Part 1: Market Overview
In November, LFP enterprises as a whole continued to operate at a high rate, with inventory accumulation easing. Meanwhile, downstream cathode material enterprises actively inquired and purchased, thus the market supply continued to be tight. Moreover, the LFP industry was affected by the rising demand, remained high operating rates., and top manufacturers are producing and selling at full capacity. High voltage real products were in short supply, and the demand for price increases from top-tier manufacturers was transmitted to the second and third tier enterprises. But the range of price increases still depends on the bidding guidance of top-tier manufacturers at the end of the year, and the market price competition was still fierce.
Part 2: Price Analysis
In November, the prices of lithium carbonate raw materials showed a V-shaped trend. With the improvement of demand, the LFP industry had a strong willingness to reduce losses, and there was a strong demand for increased fabrication charges. Thus the prices of LFP showed an upward trend. However, the LFP factories and battery cell factories were in a tug-of-war, and low-priced orders were obvious in the market. As the end of the year approaches, and the market urgently needs guidance from top-tier battery cell factories for bidding.
Part 3: Production Analysis
In November, China's LFP production was 276,800 tonnes, an increase of 10.0% compared to the previous month. In November, driven by subsidy policies, the demand for the power battery market was not weak during the off-season. At the end of December, the domestic energy storage sector connected to the grid at the end of the year and overseas projects rushed to install, resulting in a significant increase in shipments.
It is expected that the LFP production in December will be 279,400 tonnes. In December, the demand for EVs in the market will continue to improve supported by subsidy policies. At the same time, the demand for purchasing cars after the New Year is expected to be in advance. Overseas energy storage orders are not expected to decline in the short term. The LFP orders in December may continue to increase, and the production scheduling is expected to increase by 0.9%.
Part 4: Import and Export Analysis
The China's LFP imports in October reached 14.38 tonnes, an increase of 12.13 tonnes month on month, with a growth rate of 539.02%, and an increase of 14.08 tons year on year, with a growth rate of 4692.67%, According to Chinese customs data, according to data from the General administration of Customs of the People's Republic of China (GACC).
In October, China's LFP exports stood at 310.5 tonnes, a decrease of 227.87 tonnes or 42.33% compared to the previous month, and an increase of 290.82 tonnes or 1477.75% YoY.
