China EMD Output In August And Forecast For September

SHANGHAI, Sep 12 (SMM) –SMM data showed that China’s electrolytic manganese dioxide (EMD) output was 15,900 mt (including 2,800 mt for LMO battery, 8,900 mt for alkaline manganese battery, and 4,200 mt for zinc-carbon battery) in August, down 5.41% MoM and up 17.03% YoY. The output totalled 125,200 mt from January to August, a year-on-year decrease of 41.28%. The output reduction in August was mainly reflected in EMD that is used to produce LMO. Poor orders and cost pressure drove LMO plants to scale back production and raw material purchase. Amid moderate demand for primary battery, output of EMD that is used to produce alkaline-manganese battery and zinc-carbon battery barely changed compared with July.

Since sluggish LMO demand led to inventory accumulation of LMO-oriented EMD in August, there could be additional output cuts by LMO-oriented EMD plants in September. In contrast, output of EMD used in alkaline-manganese battery and zinc-carbon battery might see mild growth, driven by pre-holiday downstream stocking. All in all, we see domestic EMD output falling from August to 14,600 mt in September.