According to data monitored by the Business Society, as of November 3rd, the average price of high-quality power grade lithium iron phosphate was 63600 yuan/ton. This week, the price of lithium iron phosphate showed a slight decline, with a decrease of 0.93% compared to the same period last week. In October, the overall trend of lithium iron phosphate was weak and decreased by 10.17%, with a price drop of 7200 yuan/ton. Since November, it has still maintained a weak trend.

This week, the stable operation of lithium iron phosphate is the main focus. The price for the same period last week was 63600 yuan/ton, and the current mainstream price is around 63000 yuan/ton. The overall market is stable and weak, with downstream restocking on demand and weak demand. Upstream lithium carbonate is stable and weak, and the cost support for lithium iron phosphate is not strong. There is still overcapacity, and the overall market is operating under pressure.

In terms of supply and demand: It is predicted that there will be a surplus of global lithium iron phosphate production capacity in 2025, approximately exceeding 3 million per ton. However, the lithium battery industry is still hot, and there are still multiple enterprises building new production lines and production lines.

Cost side: Upstream lithium carbonate is weak and declining, with insufficient cost support for lithium iron phosphate. In October, the price of lithium carbonate continued to be low, but after the National Day holiday, the trend was flat and prices continued to decline. In November, lithium carbonate remained weak and moved forward under pressure, with lithium iron phosphate passively following the decline.

In the first half of 2023, the cumulative production of power batteries in China is about 194GWh, while the installed capacity is only 103.9GWh, which is relatively surplus. It is speculated that the production capacity of lithium iron phosphate in China will reach 5.75 million tons in 2025, with a demand of about 2.67 million tons and a production capacity of over 3 million tons. Based on the current situation, the production capacity of lithium iron phosphate is oversupplied, and the positive electrode market will maintain this surplus trend in the short term.

Analysts from Business Society’s Lithium Iron Phosphate believe that lithium iron phosphate will maintain a weak operation in the short term. Under the dual pressure of oversupply and weak demand support, lithium iron phosphate will move forward under pressure. The downturn in power batteries is obvious, and the recovery of industry demand is slow and less than expected. Upstream raw materials continue to decline, and there is a lack of support on the cost side. There is a strong wait-and-see atmosphere among enterprises, and bearish sentiment still exists,