SMM Analysis Of China LMO Production In May And Forecast For June

In May 2024, China's LMO production was 11,186 mt, down 5.65% MoM and down 17.23% YoY. The output reduction can be attributed to two reasons. Firstly, falling lithium carbonate prices and relatively sufficient inventory on hand triggered strong wait and see sentiment among downstream battery cell makers, leaving them restocking only as needed. Secondly, significantly weakening LMO demand and intense market competition kept LMO producers cautious about production.

Entering June, lithium carbonate prices are expected to show a slight downward trend. Additionally, the demand from downstream battery cell manufacturers shows signs of weakening further, with no positive trend in the short term. Most LMO producers schedule production based on sales. LMO production is expected to reach 10,722 mt in June, down 4.14% MoM and 27.01% YoY.