SMM

In December 2024, China's LMO production declined MoM but showed slight YoY growth. The decline was mainly due to the lack of significant increases in lithium carbonate prices, which remained low, making it difficult for LMO prices to improve and keeping them near cost levels. Market sentiment remained pessimistic. With year-end approaching, downstream demand was weak, and stockpiling willingness was low. LMO producers focused on destocking and intentionally controlled production. In January, due to the Chinese New Year holiday, most LMO producers are expected to halt production and take holidays, leading to further production declines MoM.