China's LCO output totaled 10,700 tonnes in June, moving down 5.64% compared to last month. In June, downstream battery cell factories stocked up ahead of schedule until July due to the DRC's export ban extension, and it was difficult to sign new LCO orders. Meanwhile, most market players mainly focused on delivering early orders, and top-tier smelters maintained stable production while small and medium-sized ones slightly reduced production, resulting in a slight decrease in production.
It's likely that China's LCO output in July may be at 10,800 tonnes, with a month-on-month increase of 0.93% as August-September is the peak season for 3C electronic products and the demand will climb up. Considering the tight supply of raw materials, battery cell factories may gradually boost cobalt prices and may build up stocks in advance. However, most downstream users' restocking can meet the needs in July, so it is expected that there will be little change in LCO production.
Edited by Cassie Li, lixiangying@mysteel.com
