Shang Hai Zheng Quan Bao·2025-12-01 23:10Core Viewpoint - The price of ethylene carbonate (EC) has rebounded due to a tight supply-demand relationship, leading to a potential recovery in industry profitability, with significant stock price increases for leading companies in the sector since September 2023 [2][5]. Group 1: Price Dynamics - The supply-demand relationship for battery-grade EC is currently in a "tight balance," with some manufacturers limiting orders or pausing quotes [2][3]. - The average price of battery-grade EC increased by 11.46% in November, while industrial-grade EC rose by 11.37% [3]. - Manufacturers are adjusting their strategies in response to rising EC prices, with some actively taking orders while others adopt limited order strategies or stop external quotes altogether [3][4]. Group 2: Industry Outlook - Analysts predict that the price increase of EC will have sustainability due to ongoing tight supply and strong downstream demand for electrolytes [4]. - The industry is currently in a phase of profitability recovery, with leading companies like Haike Xinyuan and Shida Shenghua experiencing significant stock price increases, although they have not yet achieved excess returns [5][6]. - It is expected that by 2026, the profitability of lithium battery solvents will improve significantly due to restrained capacity expansion among major enterprises [6]. Group 3: Demand and Capacity - The demand for EC is driven by the rapid growth in the energy storage and power battery markets, leading to increased procurement of electrolytes [3]. - By 2025, the total capacity for both battery-grade and industrial-grade EC is projected to exceed 2 million tons [6]. - The production of lithium battery additives is expected to drive an additional demand of over 300,000 tons of EC in 2026 [6].