SHANGHAI, Aug 10 (SMM) –
In July 2023, the production of lithium manganese oxide (LMO) in China reached 10,072 mt, marking a month-on-month decrease of 31% but a year-on-year surge of 85%. Over the month, LMO operations confronted dual challenges arising from both the raw material and demand sectors, consequently leading to a downward shift in the operational rates of companies. In terms of raw materials, lithium carbonate broadly maintained a subtle downward trend in July, continually undermining the cost support for LMO. This resulted in downstream battery cell manufacturers exercising increased prudence while procuring LMO cathodes. As for the demand sector, July represents a period of subdued demand for consumer electronics. Moreover, the aftermath of prior explosion incidents prompted the Guangdong Market Supervision Bureau to impose light inventory management on battery companies. These factors have exerted a substantial impact on LMO demand. Given that some LMO companies still had prior fixed orders to fulfill in July, the reduction in production was not overly drastic. Nevertheless, the challenges from both the raw material and demand sectors are likely to persist into August, with the anticipated LMO production projected to be approximately 7,526 mt, signifying a month-on-month contraction of 25% but a year-on-year ascent of 32%.
