SHANGHAI, Sep 15 (SMM) – China’s LMO output stood at 8,041 mt in August, down 20% MoM and up 41% YoY. Orders for LMO were sluggish as falling lithium carbonate price kept downstream LMO battery makers cautious about raw material purchase, with transactions being limited and driven by essential needs. Most LMO plants have priced in perceived decline in future lithium carbonate price when making quotes to buyers. A handful of small and medium-sized LMO plants who were unable to bear losses closed for over half a month.
Downstream enterprises normally start stocking up in September in preparation for Singles’ Day shopping festival (November 11), but this year might see a somehow different picture since a majority of battery makers will try to avoid excessive inventory amid volatile lithium carbonate price. There is a general pessimistic view towards demand outlook for September, with very few producers planning to ramp up production. We see domestic LMO output at 6,887 mt this month, down 14% MoM, but up 15% YoY.
