Market Dynamics and Outlook for Key Battery Commodities

Manganese and Nickel Market Stability with Underlying Pressures

The Electrolytic Manganese Metal (EMM) market has seen prices remain stable recently, despite firm quotes from sellers who show a weak willingness to sell. Demand, however, remains sluggish, with downstream steel mills maintaining cautious purchasing approaches and a strong wait-and-see sentiment prevailing. For nickel, battery-grade nickel sulphate prices have also held steady, supported by rising LME nickel prices (due to "anti-rat race" competition) and low finished product inventories among smelters. However, thin transactions persist due to weak overall demand, though precursor plants are expected to enter a restocking period soon, which could lead to modest price rebounds. China's refined nickel imports saw a slight decrease in June, while exports fell more significantly, reflecting adjustments in trade flows and domestic market conditions.

Iron Phosphate and Related Precursors: Indirect Price Influences

While direct battery-grade iron phosphate data is not extensively covered, the market for its precursors, iron ore and coke, provides indirect insights. Domestic iron ore concentrate prices in Shandong are showing potential for upward adjustment, driven by strong purchasing interest from steel mills and robust futures performance. This increased demand for iron ore, coupled with rising hot metal production in steel mills, could exert upward pressure on the cost of iron inputs for LFP battery production. Similarly, the coke market has implemented price increases, with a second round anticipated, due to increased hot metal production and weakening willingness of steel mills to cut production. These energy and raw material cost increases in the steel sector can indirectly affect the overall production cost of iron phosphate, a key component of LFP batteries.

Broader Economic and Industry Indicators

The general landscape of green energy and EV adoption continues to be a primary driver for these markets. While specific price forecasts for individual battery metals like lithium and cobalt weren't detailed across all provided articles, the overall trend of increasing EV production (BYD's 13 million NEVs, China's EV market situation, new EV models like Ford Bronco, Chery Fulwin) and significant investments in large-scale battery storage projects (China's largest standalone project) strongly indicate sustained, robust demand for all battery raw materials. The competitive landscape in carbon fiber, another material used in lightweighting EVs, also shows aggressive partnerships and capacity expansions, highlighting broader industrial trends impacting advanced materials in the clean energy transition.