[SMM Analysis] in May 2019, China's positive material production decreased by 1.7 per cent from a month earlier.

SMM, June 14 / PRNewswire-Asianet /-

Source: SMM

In May 2019, China's positive material production was 3.94 tons, down 1.7 percent from the previous month and up 50 percent from the same period last year.

Ternary materials: in May 2019, the output of ternary materials in China was 20500 tons, down 5 per cent from the previous month and up 64 per cent from the same period last year. At the end of the subsidized transition period and safety concerns, manufacturers in Beijing, Zhejiang, Jiangsu and Hunan reduced their orders and reduced production to varying degrees in May. Reducers say signs of a pick-up in demand are unclear. In May, the output models of cathode materials were 60% of 3 series and 5 series medium and low nickel products, 12% of 8 series and NCA series high nickel products, and 27% of transition line 6 series products. It is worth noting that in high nickel, the proportion of 8-series products rose to 10%. The positive material factory said that it was the demand raised by the leading battery factory for the preparation of products after the Spring Festival next year, and the demand for 8-series products is expected to grow slowly in the future. SMM expects production of ternary materials to rise to 21300 tons in June.

Lithium cobalt: in May 2019, China produced 0.51 tons of lithium cobalt, up 6% from the previous month and 10% from a year earlier. The production of lithium cobalt acid increased slowly, mainly from Tianjin and Fujian producers. At present, the cobalt price is low, the willingness to purchase battery terminals is low, and the production enthusiasm of small and medium-sized producers is not high. It is expected that the production concentration of lithium cobalt acid will be further improved in the future. SMM expects the production of lithium cobalt acid in China to be flat in June, about 5100 tons.

Lithium iron phosphate: in May 2019, the national output of lithium iron phosphate was 8400 tons, down 0.1 per cent from the previous month and up 78.9 per cent from the same period last year. In April, a Guangdong lithium iron phosphate producer moved to its Qinghai plant for cost reasons, reducing production at its Guangdong plant. Production during the transition period has been reduced by 2 to 300 tons per month, and the transition period is expected to be 2 to 3 months. However, the new production capacity of 7000 tons per year of a large plant in Hefei began to go into production this month, so the national output remained basically unchanged in May. We expect a small increase in production in June, to about 8600 tons.

Lithium manganate: in May 2019, the national production of lithium manganate was 5400 tons, up 0.1 per cent from the previous month and 16.7 per cent from the same period last year. Due to the steady impact of orders in May, the national lithium manganate production in May was flat compared with April. We learned that manufacturers revealed that June will begin to enter the volume of lithium manganate traditional consumption off-season, demand has been reduced. As a result, national lithium manganate production is expected to fall slightly by 3 per cent to 5200 tons in June.

SMM Cobalt Lithium Research team

Hu Yan 021 51666809

Hong Lu 021 51666814

Ning Ziwei 021 51666780

Qin Jingjing 021 51666828