In March, China's lithium cobalt oxide (LCO) production reached 9,760 tonnes, an increase of 29.61% MoM. In March, the LCO market experienced price hikes primarily due to disruptions in the supply chain caused by the Democratic Republic of Congo's (DRC) export ban. This prompted LCO smelters to increase the production. Meanwhile, the market resumes normal production in March from the holiday season in February.
It is anticipated that production will drop month-on-month in April due to high LCO prices and flat demand for 3C products. And the downstream players prioritize destocking. The routine stockpiling may be delayed until around Labor Day. Therefore, it is expected that the production of LCO in April will decline slightly.
Edited by Cassie Li, lixiangying@mysteel.com
