SMM China July Electrolytic Manganese Dioxide (EMD) Production and August Forecast

According to SMM, China's EMD production in July 2024 was 14,900 mt (including 800 mt of LMO type, 8,900 mt of alkaline manganese type, and 5,200 mt of carbon zinc type), up 1.39% MoM but down 16.86% YoY. The survey showed that EMD production in July slightly increased compared to June, with LMO type production declining, alkaline manganese type production holding relatively stable, and carbon zinc type production slightly increasing. The primary battery market was relatively stable, with most orders being long-term contracts, resulting in minimal demand fluctuations. When downstream needs to replenish inventory, the scheduled production of EMD producers will correspondingly increase. Conversely, the secondary battery market was still in the traditional off-season, with fierce competition and significantly narrowed profit margins. To maintain operations, most LMO producers chose to reduce costs or cut production. Additionally, due to the higher price of EMD compared to Mn3O4, its limited advantage led to an overall decline in market demand. It is expected that in August, the primary battery market may see stockpiling demand, while the secondary battery market is expected to rebound as the off-season ends, thereby driving further growth in the overall EMD market production. Therefore, considering the market situation, EMD production in August is estimated to be around 15,900 mt, up 8.16% MoM but down 6.27% YoY.