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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