SHANGHAI, Jul 25 (SMM) - China’s LMO output stood at 3,990 mt in June, up 14% MoM, but down 53% YoY.
Previously, many LMO plants were shut down or lowered output due to poor demand, losses and high inventory. But this situation was eased slightly in June. With the continuous rebound of lithium salt prices, the price of electronics-oriented LMO returned to more than 120,000 yuan/mt. The downstream buyers still held a bullish attitude towards the market outlook of LMO and were thus more willingness to buy on dips. Orders of more than 500 mt were gradually heard. This encouraged LMO plants to raise operating rates.
On the demand side, as the impact of the pandemic has gradually subsided, the demand from mobile power sources, smart wear and other fields increased. Rising lithium salt prices drove battery cell makers to stock up at low prices.
SMM estimates China’s LMO output to be 5,304 mt in July, up 33% MoM, but down 53% YoY.