According to SMM, China's Mn3O4 production was 9,700 mt (including 5,300 mt of electronic grade and 4,400 mt of battery grade) in May, down 2.02% MoM and 8.75% YoY. The reasons are: First, entering the traditional off-season, LMO cathode producers held fewer new orders amid relatively sluggish downstream demand compared to April, leading to a decline in the procurement of battery-grade Mn3O4. Therefore, the scheduled Mn3O4 production slight dropped. Second, in May, Guangxi experienced the strongest rainfall of the year, affecting many cities and limiting the operations of some producers, resulting in insufficient production momentum.
Entering June, downstream battery cell manufacturers are expected to adopt a wait-and-see attitude towards purchases, further reducing demand for LMO. Therefore, the procurement of battery-grade Mn3O4 may decline. For the electronic grade Mn3O4, the overall market is relatively stable, with no significant fluctuations expected. In summary, the overall production of battery-grade Mn3O4 in June is expected to decline to around 9,500 mt.
