SMM

In December, LCO production declined by 3% MoM. Near year-end, end-use demand weakened, and battery cell manufacturers mainly purchased as needed, slowing overall procurement. This trend extended to LCO material producers, where slight order declines led to reduced production schedules. Market structure-wise, December's CR5 stood at 85%, with leading material producers maintaining high operating rates and sufficient orders. In January, due to the Chinese New Year holiday and the off-season at the beginning of the year, LCO production is expected to decline further, down 4% MoM.