SHANGHAI, Sep 9 (SMM) —China’s tricobalt tetraoxide output continued to increase in August, but may gradually decline in September due to the low season. Downstream demand is likely to fall sharply in Q4.
China’s tricobalt tetraoxide output continued to increase in August, but may gradually decline in September due to the low season. Downstream demand is likely to fall sharply in Q4.
Tricobalt tetraoxide prices are likely to fall amid weaker demand, but cost support may limit the downside room. The spread between low-end and high-end prices is expected to gradually narrow.
Major lithium salt plants more willing to raise lithium carbonate prices as operating rates at downstream plants rose slightly
Operating rates at ternary materials and LMO producers rose slightly. Operating rates at LFP producers rose month on month and year on year in August amid increasing demand from motive power market. Lithium salt prices are expected to go up slightly amid slight rise of demand from downstream buyers, full-capacity output at major LFP plants in Q3, and reluctance to accept higher prices of raw materials by buyers.
LFP and LMO output rose further in August, LFP output to grow sharply in 2020
China’s LFP output continued to increase in August as growing demand from the motive power market encouraged major producers to operate close to full capacity. Demand from domestic and overseas energy storage sectors also increased. LFP output is set to rise significantly in 2020 from 2019, driven by increasing demand from 5G base stations and increasing share of LFP batteries in new energy passenger cars.
The output of LMO increased on the month in August amid rising demand from downstream digital and motive power markets. Besides, September and October are the high season of digital products. LMO exports to India are disrupted amid COVID-19 pandemic and the deterioration of Sino-Indian relations.