Core Viewpoint - The article discusses recent developments in the lithium iron phosphate (LFP) industry, highlighting production adjustments by companies and the implications for pricing and profitability in the sector [1]. Group 1: Production Adjustments - Hunan YN and Wanrun New Energy announced maintenance on certain production lines, affecting output by 15,000 to 35,000 tons and 5,000 to 20,000 tons respectively [1]. - The high nominal operating rate in the LFP industry reached 89% in November, with leading companies operating at over 100% capacity, raising safety production concerns [1]. Group 2: Pricing and Profitability - The profit margins in the LFP segment are thin, with YN's long-term profit at 1,000 yuan per ton, while most others are either marginally profitable or operating at a loss [1]. - There is a significant discrepancy between SMM pricing (used for downstream settlements) and actual spot/futures prices, leading to mismatches in operating costs and capital expenditures [1]. - The industry is experiencing a turning point, as the maintenance reflects a strong price support stance, with the LFP industry alliance issuing average cost and price increase notices [1].

Group 1: General Information - Report date: November 20, 2025 [2] - Research team: Energy and Chemical Research Team [3] Group 2: Market Performance and Outlook Market Performance - Industrial silicon futures prices rose rapidly in the afternoon. The closing price of Si2601 was 9,390 yuan/ton, with a gain of 4.68%. The trading volume was 755,732 lots, and the open interest was 30,669 lots, with a net increase of 58,650 lots [4] - Spot prices increased slightly. The price range of 553 was 9,200 - 9,500 yuan/ton, and the price range of 421 was 9,750 - 9,950 yuan/ton [4] Market Outlook - Supply and demand of industrial silicon both decreased. Production cuts in the southwest production area were ongoing, and weekly output still had room to decline [4] - The planned production cuts of silicone enterprises were significantly lower than the previous market consensus. The actual production cuts and time under the conditions of profitability and industrial self - discipline needed to be observed. In the first half of 2025, the silicone industry also cut production to support prices, but the effect was limited. Polysilicon production was also cut simultaneously, and the monthly output was expected to remain at 120,000 tons [4] - Due to production cuts in the southwest and rising costs, after the price of 2601 strongly rose and then fell, the basis was basically at par. The upside space was limited, and it was expected to fluctuate cautiously and strongly. Be vigilant against the ebb of bullish sentiment in the same - sector commodities [4] Group 3: Market News - On November 19, the number of industrial silicon warehouse receipts on the Guangzhou Futures Exchange was 43,412 lots, a net decrease of 10 lots from the previous trading day [4] - A meeting of actual controllers of silicone monomer plants was held in Shanghai as scheduled. The organizer was the China Fluorosilicone and Organic Materials Industry Association, and leading enterprises participated. The total production capacity of participating enterprises accounted for more than 80% of the industry's production capacity. The meeting was about joint emission reduction and price support [4] - The emission reduction plan was to be implemented starting from December 1. If it was implemented throughout December, the DMC output in December was expected to be about 210,400 tons, a reduction of about 8,000 tons compared with before the reduction. It was expected to affect the monthly consumption of industrial silicon by about 4,400 tons [4]