Shang Hai Zheng Quan Bao·2025-11-02 07:56Core Viewpoint - The lithium hexafluorophosphate market is experiencing a significant price surge, with expectations for continued demand and improved profitability for leading companies in the sector, although a return to previous extreme price levels is not anticipated [1][4][8]. Price Trends - The price of lithium hexafluorophosphate has rebounded sharply from a low of 49,800 yuan/ton on July 18 to 110,800 yuan/ton by October 31, marking an increase of over 120% in less than four months [2][4]. - The price fluctuations have been described as "one price a day," indicating a volatile market environment [2]. Supply and Demand Dynamics - Leading companies in the lithium hexafluorophosphate sector are operating at full capacity, with a significant improvement in supply-demand relationships [6][10]. - The demand for lithium hexafluorophosphate is driven by the explosive growth in the new energy and energy storage industries, alongside cautious capacity expansion from suppliers [4][5]. Company Performance - Major companies such as Tianqi Materials, Dufluor, and Tianji Co. reported improved third-quarter performance, with Tianqi Materials seeing a 52% year-on-year increase in net profit [5][6]. - Dufluor turned a profit in the third quarter, reporting a net profit of 26.72 million yuan, while Tianji Co. significantly reduced its losses [5]. Market Outlook - Companies expect the price of lithium hexafluorophosphate to continue rising, with optimistic forecasts for demand in the first quarter of the following year [6][8]. - The industry anticipates that the supply-demand balance will remain tight until at least 2026, with potential for further price increases [4][6]. Long-term Contracts and Pricing Strategies - Companies are tightening the terms for long-term contracts, requiring upfront payments and adjusting prices based on market conditions [6][7]. - Pricing for long-term contracts is flexible and may be adjusted monthly to reflect market prices, ensuring core customers receive a certain level of supply [7][8]. Industry Trends - The overall industry is expected to see a recovery in profitability, with many smaller companies lacking confidence in expanding production capacity [9][10]. - The market is characterized by a cautious approach to capacity expansion, with leading firms likely to dominate future supply increases [9].