China PCAM Output Increased Slightly in May, and Likely to Jump 20% in June amid Recovering Demand

SHANGHAI, Jun 13 (SMM) - China produced 55,000 mt of precursor of cathode active materials (PCAM) in May, up 4% MoM. Weak demand constrained the recovery of production. Some small PCAM factories were closed for one week or longer at the beginning of May. However, some large enterprises ramped up the production of their new capacity and raised their production before the release of their quarterly reports.

The pandemic in Shanghai remained severe in May, preventing the supply chain of car companies from recovering rapidly. Large battery makers continued to destock NMC cathode materials. As a result, the PCAM demand from NMC cathode materials recovered slowly. The electronics market was sluggish. The export volume of PCAM increased steadily thanks to strong demand from the overseas NEV market. Overall, the demand for PCAM was relatively stable in May.

It is expected that the NEV market will show strong recovery in June, the electronics market will recover slowly, and the overseas orders will increase steadily. As such, the PCAM output is estimated to jump 20% month-on-month in June.