China imported 21.186 tonnes of LFP through the first half of 2023, down 97.17% from H2 2022, partly due to sluggish demand caused by volatile raw material prices and market sentiment, on the background of China's weak dependence on imported LFP.
Source: General Administration of Customs (GACC)
Taiwan, China remained the largest supplier China, with Germany showing up shortly in January and February. 78.85% of the imports went to Guangdong Province, which accommodates few LFP capacity and is adjacent to Taiwan Province.
China's LFP exports, on the other hand, recorded 610.415 t in the first half, up 8.27% YoY. The trend of domestic battery factories going abroad somehow promoted China's exports. Qinghai became the most important exporting province with a volume of 296.748 t, taking up 48.61% of China's total exports in H1 2023.
Source: GACC
Unlike the import market where Taiwan, China is the sole big supplier, the destinations of China's exports are becoming increasingly diversified from Asia to Europe, Australia, South and North America. Nevertheless, Japan and South Korea remained the largest consumers, with other places ramping up slowly.
It is expected that LFP prices would stabilize compared with the first half with the listing of lithium carbonate futures contract on Guangzhou Futures Exchange, and the imports may rise to extent as overseas LFP capacity is under expansion.
Written by Aggie Hu, huchenying@mysteel.com