The Overall Price Of Petrochemical Products And New Energy Products Upward

In the first half of 2022, price increases over crude oil accounted for 3.5% of the varieties, price increases over coal accounted for nearly 7% of the varieties, mainly including lithium carbonate, diesel, gasoline, sulfur, phosphate rock, toluene, paraxylene, fuel oil, diammonium phosphate, potassium chloride, TDI, etc., of which the price of lithium carbonate products rose the most. Price increases over the upstream raw materials are mainly concentrated in petrochemical products (gasoline, diesel, sulfur, toluene, toluene, fuel oil), new energy lithium batteries (lithium carbonate, lithium iron phosphate), phosphorus chemical (phosphate rock, diammonium phosphate) and other industrial chains.

New energy vehicle production and sales are booming, upstream lithium resources prices soared

The new energy vehicle industry chain continues to grow at a high rate, according to the latest data released by the China Association of Automobile Manufacturers, in addition to April, the first five months of 2022, new energy vehicle sales growth of more than 100% year-on-year. In terms of batteries, the data released by the China Power Vehicle Battery Industry Association in June showed that the year-on-year increase in power battery production from January to May 2022 was over 120%. Upstream lithium resources demand is increasing rapidly, while lithium ore resources stock is limited, lithium carbonate and lithium iron phosphate and other related products new production capacity is rising slowly, the actual supply is limited. The contradiction between supply and demand, the price of upstream lithium resources related products rose sharply.

Phosphate ore supply decreases and demand increases, prices continue to rise

Since 2021, phosphate rock prices have continued to rise, with relatively stable prices in the first quarter of 2022 and rapid price increases after the second quarter. The downstream of phosphate rock mainly includes phosphate fertilizer, feed grade phosphate, yellow phosphorus, wet process phosphoric acid, etc., of which phosphate fertilizer is its core downstream, accounting for more than 60%. 2022, the Russia-Ukraine conflict triggered the global food crisis, phosphate fertilizer, phosphate and other downstream products demand is positive; at the same time, the lithium industry chain is growing rapidly, increasing demand for iron phosphate and lithium iron phosphate market. On the supply side, in recent years, due to environmental protection policies, phosphate ore mining continues to be restricted, production has gradually decreased, and under long-term mining, the proportion of domestic medium- and high-end grade phosphate ore has been declining year by year, and in April 2022, due to production disruptions in Guizhou and Hubei, phosphate ore production fell 6% year-on-year, resulting in a shortage of market supply. The tight supply situation was further exacerbated by the introduction of restrictive policies on phosphate ore mining and export sales in some regions.