Ferrous oxalate

Recent Market Intelligence Report on Ferrous Oxalate

I. Market Price Dynamics
- **Price Benchmark**: As of June 16, 2026, the benchmark market price for ferrous oxalate (per the Echemi price model) serves as a transaction guidance price, subject to adjustments based on logistics costs, brand premium, and regional price differentials; specific values require real-time premium/discount coefficient calibration.
- **Historical Trend**: The average ex-factory price of ferrous oxalate in 2024 was RMB 8,650 per ton, representing a 2.1% year-on-year decline. In 2025, it is projected to rebound to RMB 8,820 per ton, marking a 2.0% year-on-year increase—reflecting recovering demand and ongoing capacity optimization.

II. Supply-Demand Analysis
- **Supply Side**:
- **Capacity Expansion**: In 2025, China’s total ferrous oxalate production capacity reached 185,000 tons, with actual output at 152,000 tons and an overall capacity utilization rate of 82.2%. Leading enterprises—including a Hunan-based chemical company, a Hubei-based new materials firm, and a Jiangsu-based fine chemical company—collectively account for 54% of national output.
- **Regional Distribution**: The East China region (including Guangdong and Fujian provinces) is the largest production and consumption hub, accounting for 39% of total output; North and Central China jointly account for 27%; Southwest and Northwest regions—where new energy industries are still in early development—represent only 10% combined.
- **New Projects**: Jiangxi Shenghua, a subsidiary of Fulint Precision Engineering, plans to commission a 500,000-ton-per-year ferrous oxalate production facility in September 2026. Utilizing copper smelting slag as feedstock, the project entails a total investment of RMB 1.5 billion and targets the growing demand for high-density lithium iron phosphate (LFP) precursors.

- **Demand Side**:
- **Downstream Applications**: In 2024, new energy materials accounted for 58.3% of total demand (primarily LFP precursors), catalysts for 21.7%, electronic materials for 12.4%, and other industrial applications for 7.6%.
- **Demand Growth**: The 2025 market size is forecast to reach RMB 1.42 billion, up 10.9% year-on-year; output is expected to reach 168,000 tons, lifting capacity utilization to 86.5%. Surging demand for high-density LFP is accelerating adoption of the ferrous oxalate route.

III. Industry Drivers
- **Policy Support**: National “Dual Carbon” (carbon peak & carbon neutrality) strategy and the “14th Five-Year Plan for Raw Materials Industry Development” promote green transformation; indirectly, the “New Energy Vehicle Industry Development Plan” fuels upstream material demand.
- **Technological Advancement**: Continuous crystallization, membrane separation, and low-grade iron source conversion technologies reduce energy consumption and wastewater discharge while enhancing product purity (sodium residue < 50 ppm) and batch consistency.
- **Export Growth**: Export volume reached 21,000 tons in 2024, up 11.7% year-on-year, primarily destined for India and Europe. Exports are projected to rise to 24,000 tons in 2025—an increase of 14.3%—indicating strengthened global competitiveness.

IV. Market Challenges and Risks
- **Raw Material Constraints**: Supply of ferrous sulfate is constrained by reduced titanium dioxide production and substitution of steel pickling processes, resulting in persistently elevated prices. Oxalic acid—classified as highly energy-intensive—faces stricter approvals for new capacity; its 2023 operating rate stood at only 69%.
- **Regional Mismatch**: Newly added capacity in Central and Western China is geographically distant from downstream battery clusters, increasing logistics costs by 8–12% and eroding competitive advantage.
- **Intensifying Competition**: Over 600,000 tons of planned LFP expansion capacity nationwide has intensified rivalry between the ferrous oxalate route and conventional ammonium phosphate–based routes—potentially triggering price wars.

V. Future Outlook
- **Price Trend**: Prices face short-term pressure due to new capacity ramp-ups; however, medium-to-long-term growth in high-density LFP demand and export expansion are expected to support steady upward momentum, with the average 2026 price potentially exceeding RMB 9,000 per ton.
- **Demand Structure**: The share of LFP precursors is projected to rise above 65%; demand for premium products—including ultra-high-purity and tubular-crystal-form ferrous oxalate—is anticipated to outpace industry-average growth.
- **Technology Direction**: Bio-based production methods for ferrous oxalate are gradually commercializing due to environmental advantages; continuous reaction systems and spent liquor recycling technologies are becoming mainstream, reducing industry carbon footprint by over 30%.
- **Regional Layout**: The Yangtze River Delta, Pearl River Delta, and Chengdu-Chongqing Economic Circle—home to concentrated battery manufacturing—are emerging as hotspots for demand growth; meanwhile, Central and Western China, leveraging resource endowments and cost advantages, are evolving into integrated hubs for production and consumption.

VI. Key Enterprise Updates
- **Fulint Precision Engineering**: Through Jiangxi Shenghua, it is developing a 500,000-ton-per-year ferrous oxalate project, vertically integrated with a planned one-million-ton LFP cathode material capacity, reinforcing its end-to-end advantage.
- **Dezhou Dehua Chemical**: In January 2026, it publicly disclosed its environmental impact assessment for a 200,000-ton-per-year ferrous oxalate project, featuring continuous crystallization technology and targeting top-tier battery manufacturers such as Contemporary Amperex Technology Co., Limited (CATL).
- **Hefei Yalong Chemical and Shandong Fengyuan Chemical**: Accelerating technological upgrades to achieve product purity above 99.5%, meeting stringent requirements for high-end pharmaceutical and electronic material applications.