SMM reports China's December 2023 EMD production at 16,600 mt: 1,100 mt of LMO-oriented EMD, 10,300 mt alkaline battery EMD, 5,200 mt zinc-carbon battery EMD, down 8.68% MoM, up 25.38% YoY. Total 2023 production was about 196,800 mt, down 27.92% YoY. EMD production fell for LMO and alkaline types, except zinc-carbon. LMO market's weak demand cut its procurement, shifting firms to zinc-carbon EMD, resulting in an increase in the production of zinc-carbon EMD. Alkaline type dipped slightly as year-end inventory reduction took priority. Despite stable downstream demand, scheduled production remains cautious.
As the Spring Festival nears, some battery cell makers may slightly increase their alkaline manganese and zinc-carbon EMD orders. Yet, EMD firms could keep lower operating rates to cut stock, and the LMO market may stay weak. Overall, January's EMD production is estimated at around 15,500 mt.
