China's LCO Output In September And Forecast For October

SHANGHAI, Oct 14 (SMM) –

In September, the production of LCO in China was 7,980 mt, with a 17% increase MoM and a 14% increase YoY. The discussion and anticipation of new digital products in the market increased as new models were released in September, which enhanced consumers’ willingness to purchase and upgrade their devices. Since new models were usually not readily available in stock, mobile device manufacturers prepare corresponding raw material inventory through pre-sale orders and place battery orders with upstream battery cell factories. In addition to new product releases, September was also an important time for LCO material manufacturers and battery cell factories to prepare for the Double 11 Shopping Festival, driving an evident increase in LCO production due to the recovery of terminal digital demand during this period compared to previous months. In October, there will continue to be new product releases in the digital consumer market leading up to the Double 11 Shopping Festival. Additionally, October is a stage for overseas markets to stock up for year-end shopping festivals. Although the projected production for October is expected to be lower than September, it will still maintain a relatively high operating rate compared to the off-season for the digital industry. The estimated production for October is 7,837 mt, a decrease of 2% MoM and an increase of 7% YoY.