China's December ternary cathode precursor production was about 68,586 mt, down 2% MoM and 10% YoY. The 2023 total was 814,388 mt, down 5% YoY. As the year ended, some firms shipped more to hit targets, leading to increased production. Businesses also cut inventories, with December shipments exceeding production. Overseas demand in December was steady with slight growth as some manufacturers moved January orders to December. Domestic cathode demand was weak, causing inventory build-up. The share of mid-to-low nickel precursors dipped slightly, while that of high-nickel ones marginally rose, driven by stable export demand.
For January 2024, cathode material production is set to slightly drop by less than 1%, with precursor demand weakening as some manufacturers moved their procurement to December. Supply-side strategies for ternary cathode precursors are split. Some manufacturers cut production due to early shipments and weak demand, while others, expecting nickel and cobalt price lows and February's holiday, moved February production to January. January's estimated production in China is 66,094 mt, down 4% MoM but up 14% YoY.
