SMM Analysis of China December Co3O4 Production and January Forecast

In December 2024, China's Co3O4 production declined MoM but slightly increased YoY. The main reason for the production decline in December was weak downstream demand for LCO, which limited Co3O4 procurement to just essential needs, with fewer market inquiries. Leading Co3O4 producers maintained high operating rates, but their planned production decreased. It is expected that in January, due to the impact of the Chinese New Year holiday, the production schedule of Co3O4 producers will significantly decline. Coupled with the lack of apparent stockpiling demand from downstream LCO enterprises, Co3O4 production is expected to decline MoM again.