SMM Analysis On China September LCO Production And October Forecast

In September, LCO production increased 11% MoM and was up 11% YoY. The increase in LCO production and supply in September was driven by sufficient stocking orders from downstream battery cell manufacturers in the digital sector, particularly for mobile phone end-use. The release of new models by mobile phone brands in September stimulated consumer demand for new devices. Additionally, domestic mobile phone producers are expected to launch annual flagship models in October and November, maintaining high interest in the digital market. However, future stocking by LCO battery cell manufacturers will depend on changes in actual mobile phone sales, which will guide procurement plans. With the completion of a stocking cycle in September, LCO production in October is expected to decrease by 10% MoM but increase by 1% YoY.