Shang Hai Zheng Quan Bao·2025-12-02 05:33Core Viewpoint - The lithium iron phosphate (LFP) industry is experiencing price increases due to supply-demand imbalances and rising raw material costs, with leading companies advocating for price adjustments to ensure sustainable development and profitability [1][2][3]. Group 1: Price Adjustments - Several leading LFP companies have announced price increases, with one company raising processing fees by 3000 yuan per ton starting January 1, 2026, and another company implementing a similar increase from November 1, 2025 [1]. - The average market price for LFP products has been rising, with the current price for power-type LFP reaching 39,950 yuan per ton and energy storage-type LFP at 36,950 yuan per ton as of December 1 [4]. Group 2: Industry Dynamics - The LFP market is currently facing a supply shortage, with effective production capacity utilization exceeding 95%, and some leading companies reporting over 100% utilization [1][3]. - The average debt ratio in the industry is high at 67%, indicating significant financial pressure on companies to expand production and maintain supply [1]. Group 3: Industry Initiatives - The China Chemical and Physical Power Industry Association has called for a shift from "scale competition" to "quality competition" in response to government initiatives against excessive competition, urging companies to adhere to cost indices in pricing [2][3]. - The LFP industry is recognized as a core competitive sector in China, with Chinese companies holding approximately 95% of the global market share for LFP cathode materials [4]. Group 4: Future Outlook - Despite the traditional seasonal slowdown in the first quarter, strong demand in the energy storage market is expected to provide solid support for demand in early 2024 [8].