China LMO Output In November And Forecast For December

China's November 2023 LMO production was 6,897 mt, down 19% MoM and 23% YoY. Lithium carbonate's spot price kept falling, dragging down LMO prices. Battery cell manufacturers tend to buy more when prices rise than fall, leading to only moderate LMO demand and a strong push for price cuts. This resulted in most LMO businesses seeing a significant drop in November order volumes.

Heading into December, lithium carbonate's spot price is expected to keep falling, and cell manufacturers' production desire remains low, focusing on reducing inventory. This could tighten LMO purchasing further. With significant losses, LMO firms are cutting production, some planning pauses in December. LMO output is projected at about 4,959 mt for December, down 28% MoM and 27% YoY.