Fastmarkets’ weekly price assessment of iron phosphate anhydrous 0.96-0.98 Fe/P, battery grade, delivered China was 9,800-10,500 yuan ($1,380-1,478) per tonne on Friday, down by 200-500 yuan per tonne from 10,000-11,000 yuan per tonne previously.
A Chinese iron phosphate producer reportedly offered its product at around 9,000 yuan per tonne over the recent week, a price that multiple market participants said was out of the norm in the wider market given elevated production costs remain for most other iron phosphate producers.
“The iron phosphate producer offering at 9,000 yuan per tonne may have a cheaper supply of feedstock, so they could offer this low price which most other sellers can’t,” a Chinese cathode producer source said.
Sellers lower prices aggressively to boost sales
Still, this low offer price added more downward pressure to iron phosphate prices in China, several market participants said.
“Multiple iron phosphate producers in China have either suspended production, or kept their operation rate very low amid overcapacity and weak demand,” a Chinese iron phosphate producer source said.
A second Chinese cathode producer source said: “The market current has very weak demand. But whenever any consumer holds tender for iron phosphate, the competition to win the tender becomes fierce among the iron phosphate sellers due to oversupply. Some sellers offer aggressively low prices for iron phosphate.”
“Those sellers who successfully made deals weren’t happy because they suffered losses with the sales prices below their production costs. But those who didn’t win the tender weren’t happy either, because they also suffered losses by having no deals,” the Chinese iron phosphate producer source added.
Find out more about Fastmarkets’ newly launched iron phosphate prices.
