SMM

In December 2024, China's Co3O4 production declined MoM but showed a slight increase YoY. The main reason for the production decline in December was the weak demand for LCO downstream, which limited Co3O4 procurement to just-in-need purchases, with fewer market inquiries. Leading Co3O4 producers maintained a high operating rate, though their planned production decreased. It is expected that by January, due to the impact of the Chinese New Year holiday, the production schedule of Co3O4 producers will drop significantly. Coupled with the lack of apparent stockpiling demand from downstream LCO enterprises, Co3O4 production is expected to decline again MoM.