SHANGHAI, Dec 21 (SMM) - The output of precursors stood at 59,000 mt in November, up 2% MoM and 50% YoY. On the supply side, the companies were basically not affected by power rationing, except for some enterprises in Zhejiang in early November. In addition, the overall supply has increased due to the ramped-up output of and commissioning of new capacity at some major precursor companies.
The domestic demand from the automobile market was strong, while the overseas demand weakened due to the chip shortage suffered by US and European automobile manufacturers. The demand by the overseas leading battery enterprises also declined significantly due to product defects. The mid and low-end digital product manufacturers reduced their purchases of precursors since their product prices were not pushed up by the surging lithium prices. The overall purchase volume in the market basically remained unchanged. The demand from the power battery market is expected to increase at the end of the year in December, while the demand from the digital market may weaken. The output of precursor is likely to increase slightly. The output of ternary precursor is expected to stand at 62,000 mt in December, up 6% MoM and 51% YoY.