[SMM Analysis] Weak Demand Leads to Decline in Manganese Dioxide Production in November

In November 2025, the EMD market officially entered the traditional off-season, with production showing a slight decline MoM. Affected by shrinking downstream demand and narrowing order volumes, the industry's operating rate also decreased. The overall market exhibited the operational characteristics of "weak demand, declining operating rates, and reduced production."

By product category, the production of carbon-zinc and alkaline manganese EMD saw a more noticeable decline. After the end of the September-October peak season in October, procurement by downstream battery enterprises returned to just essential needs, and their willingness to actively stockpile decreased, leading to adjustments in the corresponding EMD production schedules. The production of MnO2 used for LMO batteries remained stable at low levels, as the demand side lacked incremental support, making it difficult for production to rebound. On the other hand, raw material prices continued to fluctuate at highs. To control costs and avoid inventory buildup, production plans were further tightened.

Looking ahead to December 2025, the EMD market is expected to remain in the traditional off-season. There are no significant positive stimuli in the end-use consumer market, and procurement demand from primary battery enterprises is likely to stay at essential levels, with order volumes unlikely to rebound significantly. The substitution pressure on MnO2 used for LMO batteries is expected to persist, and there are no expectations for improvement on the demand side. As year-end approaches, enterprises will focus on controlling inventory and ensuring cash flow, adopting a more cautious approach to production arrangements. Overall, EMD production in December is expected to continue its downward trend, with the market maintaining a weak balance.