SHANGHAI, Mar 9 (SMM) -
Lithium carbonate
China’s lithium carbonate output was 18,609 mt in February, a month-on-month decrease of 2% but a year-on-year increase of 51%. The output fell MoM as some lithium salt companies were still under maintenance in February, and some took break during the Chinese New Year. Less calendar days in February also contributed to the declines. In March, some companies will complete the maintenance one after another, and new capacities are preparing to ramp up the production. At the same time, considering the production increase brought about by the warmer weather in Qinghai, it is expected that the supply of lithium carbonate in March may achieve a greater increase. China’s lithium carbonate output is expected to stand at 23,581 mt in March, up 27% MoM.
Lithium hydroxide
China’s lithium hydroxide output was 12,702 mt in February, a month-on-month decrease of 22% but a year-on-year increase of 6%. Some lithium salt manufacturers started or were still under maintenance in February, and the overall output was at a low level. In addition, some manufacturers took holidays during the Spring Festival, and coupled with a short production cycle in February, the performance of lithium hydroxide production in February weakened month-on-month. In March, although some manufacturers will complete the maintenance, and some new capacities will start to ramp up the production, there are still some leading factories that have not completed their annual maintenance, and the overall output remain at a low level. China’s lithium hydroxide output is estimated at 14,653 mt in March, a month-on-month increase of 15.4%.
Cobalt sulphate
China’s cobalt sulphate output was 5,735 mt in metal content in February, a month-on-month decrease of 12% but a year-on-year increase of 40%. On the supply side, during the Spring Festival in February, nearly half of the cobalt salt factories were suspended for holiday or maintenance, hence the output declined, combining less calendar days in February and tight logistics and transportation of intermediate products that reduced the supply of raw materials. It is expected that the arrival of intermediate products will improve in March compared with the previous month, and raise the output accordingly. China’s cobalt sulphate output is expected to stand at 5,876 mt in March, up 2% MoM.
Co3O4
China’s output of Co3O4 stood at 7,377 mt in February, down 2% MoM and up 32% YoY. In February, some manufacturers took the Spring Festival holiday, and the prices of cobalt salts rose, lifting the cost of Co3O4. In addition, there were also less calendar days in February. And in light of sluggish downstream demand throughout the first quarter, some manufacturers cut the production. China’s Co3O4 output is expected to stand at 7,434 mt in March, up 1% MoM.
PCAM
China’s PCAM (precursor of cathode active materials) output was 59,448 mt in February, a month-on-month decrease of 2.5% but a year-on-year increase of 65%. On the supply side, the new capacity of several precursor factories started mass production in February, but some small and medium-sized enterprises had the Spring Festival holiday in February and stopped the production for maintenance, and the overall output fell slightly, on the combination of less calendar days in February. On the demand side, the power battery sector presented stable demand, while the overseas market has not yet recovered. In addition, the demand from electronics sector has been affected by the sharp rise in lithium prices, leading to less orders. And the sector’s demand was further contained by the Spring Festival as some material factories took holidays during this period. It is expected that PCAM output will be 66,097 mt in March, an increase of 11% from the previous month amid the recovery of production and the added output from new capacities.
NMC materials
China’s NMC material output was 43,412 mt in February, a month-on-month decrease of 6% but a year-on-year increase of 55%, The output dropped mainly due to higher difficulties in obtaining lithium salt and less calendar days in February, and some manufacturers also took holidays or carried out maintenance during the Spring Festival. The proportion of the 8 series NMC materials rebounded, mainly due to the increase in high nickel orders from overseas and Chinese battery factories. Some leading battery factories advanced their orders to March, resulting in higher demand. Some small-sized factories will also resume the production in March. The output in March is expected to rise MoM by 10% to 47,964 mt.
LFP
China’s LFP material output was 53,337 mt in February, a month-on-month decrease of 14% but a year-on-year increase of 145%. The output of some companies fell due to the Spring Festival holiday, equipment maintenance and less production schedules. Meanwhile, the supply of lithium carbonate was tight in the month, restricting the production of some LFP companies and new capacities amid greater procurement difficulties. In March, affected by factors such as rising lithium salt prices, declining terminal demand and equipment maintenance, some companies will be forced to reduce the production. China’s LFP material output is expected to stand at 49,596 mt in March, down 7% MoM.
LCO
China’s LCO material output was 6,648 mt in February, a month-on-month decrease of 12% but a year-on-year increase of 3%. During the off-season for LCO materials and terminal electronics products, the supply of LCO declined in February, on the combination of high lithium salt prices that suppressed the demand of some mid and small-sized manufacturers. China’s LCO output is expected to stand at 7,327 mt in March, up 10% MoM.
LMO
China’s LMO materials output stood at 4,113 mt in February, a month-on-month decrease of 27%, but a year-on-year increase of 5%. Downstream demand weakened in February. Because most terminal enterprises have completed the procurement of LMO materials from the end of 2021 to January 2022. In addition, some LMO enterprises reduced the production for equipment maintenance or the Spring Festival holiday, reducing the overall output in February. China’s LMO output is expected to stand at 6,155 mt in March, up 50% MoM.
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