In December, China's lithium cobalt oxide (LCO) production reached 10,250 tonnes, a month-on-month increase of 9.63% and a year-on-year rising of 33.38%. In December, there were signs of recovery in the consumer electronics sector due to the stimulus of the subsidy policy, but the fundamentals did not change much. In addition, as the Chinese New Year approaching, some demand in January was boosted, leading to an increase in LCO production in December.
It is likely that there will a further decline in LCO production in January, and market players mostly hold a bearish sentiment. It is expected that LCO production may dip by 3.74% MoM, considering that the demand for LCO will not drop sharply.
Edited by Cassie Li, lixiangying@mysteel.com
