SMM

In July, LCO production was 7,970 mt, down 1% MoM, up 6% YoY. From January to July, LCO production totaled 48,800 mt, with a cumulative YoY increase of 22%. Supply side, the LCO market continued to diverge. Leading high-voltage LCO manufacturers maintained high operating rates, ensuring stable delivery of long-term orders. The low-voltage LCO market continued its price war, with second-tier manufacturers adopting volume discount strategy. However, due to the shrinking downstream segmented demand, second-tier manufacturers had poor operating rates. Demand side, end-users stocked up for H2 new model releases, maintaining strong demand for high-voltage LCO material. Overall, July LCO production was better than expected. August LCO production is expected to be 7,990 mt, flat MoM, up 18% YoY.