Lithium hexafluorophosphate (LiPF6) price continues to rise

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Publish time: 9th December, 2021      Source: CCM
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  The price of lithium hexafluorophosphate has been rising since August last year. According to recent data, the price of lithium hexafluorophosphate was RMB 70,000 per ton in August last year, and it has increased to RMB 475,000 per ton on October 8, 2021, an increase of 579%. Just this year, the price has increased 332%.

   

  According to a news reporter, the main reason for the increase in the price of lithium hexafluorophosphate is a short-term imbalance between supply and demand. Since 2017, the price of lithium hexafluorophosphate has been in continual decline, from RMB 38 million per ton at the beginning of 2017 to RMB 147,500 per ton at the end of 2017. The reason for this sharp decline in price is that China's lithium hexafluorophosphate technology has made significant progress, and the industry's production capacity has been improving since 2017.

   

  From 2018 to 2020, the overall trend of the price of lithium hexafluorophosphate moved downward, but after bottoming out in August 2020, the price surged sharply. One reason for new price-increasing imbalances in supply and demand is the recent sale of new energy vehicles in China and Europe, which has continued to exceed expectations. For example, from January to August 2021, China sold over 1.7 million new energy vehicles, a year-on-year increase of 210%.

   

  Among price increase factors are a slowdown in production and increased demand in new energy vehicle market 

  According to an industry analyst, another reason for the price increase is that the production of lithium hexafluorophosphate has certain technical barriers, and as China's environmental protection policies continue to grow, it becomes increasingly difficult to produce lithium hexafluorophosphate on a large scale.

   

  After combining this factor with the recently increased production and sale of new energy vehicles, the resulting imbalance in supply and demand has led to a sharp increase in the price of lithium hexafluorophosphate. Another analyst opined that due to the coronavirus pandemic, overseas production capacity of lithium hexafluorophosphate has been greatly affected, and so continued tension on supply has led to a price increase.

   

  Significant growth in performance of lithium hexafluoride companies 

  As a result of the recent price increase in lithium hexafluorophosphate, the performance of companies involved in the production and sale of this compound has shown significant growth during the first three quarters. Among the listed companies that have announced their performance forecasts, Do-Fluoride New Materials has reported the largest increase.

   

  On October 7, Do-Fluoride New Materials released a performance forecast and predicted a profit of RMB 718 million to RMB 738 million in the first three quarters, a year-on-year increase of roughly 5300%. Among these profits, the profit from the third quarter was between RMB 410 million and RMB 430 million. The company stated that the main reason for the substantial increase in net profit in the first three quarters was the strong market demand for the company's new material products during the reporting period, the increase in volume and price, and the substantial increase in profitability.

   

  For more information, please check our China Fluoride Materials Monthly Report

  

  

  

  

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