[SMM Analysis] Analysis of LCO Prices and Supply-Demand Situation in November

Price side, the average price of LCO (4.4V) in November was 140,500 yuan/mt, down 3.4% MoM and 37% YoY. Raw material side, the price of battery-grade lithium carbonate rebounded in November, while the price of Co3O4 continued to decline, leading to significant fluctuations in raw material prices. Despite this, due to the strong desire to bargain down prices from downstream battery cell manufacturers, the actual transaction prices of LCO did not show significant changes and continued to fluctuate downward.

Supply side, the production of LCO in November increased by 4% MoM, mainly to meet rigid demand. The operating rate of top-tier enterprises remained high, production plans were stable, and market concentration was high. Demand side, due to the limited release of new digital 3C products at year-end, downstream enterprises were cautious in their purchasing behavior and had weak stockpiling intentions, maintaining only necessary safety inventory. Therefore, it is expected that in December, the production of LCO will slightly decrease, and prices will continue to fluctuate downward.