China December LMO Output and Forecast for January

China's December 2023 LMO output was 5,113 mt, down 26% MoM and 25% YoY. Lithium carbonate spot prices, vital for LMO production, started stabilizing later in the month, offering better cost support for LMO cathodes. Year-end saw battery cell makers cutting costs and clearing inventory, pressuring LMO procurement prices. LMO producers with scant low-cost lithium carbonate reserves struggled to take orders, leaving only a few with cheap raw material stocks able to maintain production.
In January, few battery cell makers planned to stockpile before the festival, wary of lithium carbonate price stability and cautious about inventory levels. With some factories halting for maintenance, LMO demand looks set to keep falling. January's LMO production is estimated at 4,495 mt, down 12% MoM and 72% YoY.