SMM

Since mid-July, the price of lithium carbonate has been continuously falling, leading to a significant drop in the price of LMO, and the profit margins of enterprises have been shrinking. Supply side, most LMO companies have reduced production to cope with losses, with only a few companies with self-use capabilities maintaining normal production. The overall operating rate in the market has gradually declined, with many companies' operating rates dropping to around 20% to 30%. Demand side, the procurement demand from downstream battery cell manufacturers has been weak, mainly focused on clearing inventory, and the performance of new orders has been unsatisfactory. In August, market demand showed no signs of improvement, and it is expected that the supply of LMO will further decrease. The future development of the market still needs to closely monitor the price trend of raw material lithium carbonate.