China’s Lithium Cobalt Oxide Production Declines Amid Weakening Demand

In November, China’s production of lithium cobalt oxide (LCO) reached 9,350 tonnes, reflecting a month-on-month decline of 3.21% but a year-on-year increase of 12.65%. This reduction in production aligns with weakening demand from the electronics industry, prompting smelters to adjust output to match market trends.

Market analysts predict a further decline in LCO production in December, with an expected month-on-month dip of 3.4%. Despite this bearish sentiment, the decrease is anticipated to remain moderate as demand for lithium cobalt oxide stabilizes rather than experiencing a sharp downturn.

These fluctuations highlight the sensitivity of the LCO market to broader shifts in the electronics sector, as producers continue to align operations with evolving demand patterns.