【SMM Analysis：Downstream stocking demand still exists, Co3O4 production in august maintains upward trend】

In August, China's Co3O4 production increased slightly both MoM and YoY. The main reasons for the increase in august production were: the order situation of leading Co3O4 smelters was acceptable, and there was still some stocking intention for downstream lco, so the production maintained a slight increase.

It is expected that in September, downstream stocking demand will basically end. Although leading Co3O4 smelters still have orders, small smelters' orders are being squeezed, leading to production cuts in small smelters. It is expected that production will maintain a downward trend both MoM and YoY.