Shanghai, October 12 (SMM)-This is an exclusive survey of major producers by SMM analysts, an overview of China's metal production in September 2021.
The output of copper cathode in September was 802,900 tons, down 2% month-on-month and up 0.4% year-on-year.
The output of smelters in Jiangsu Province was greatly affected by the power curtailment policy after the National Day. In September, the provincial government unexpectedly issued a power curtailment notice. As the capacity utilization rate is lower than 30%, some smelters will be overhauled, and the total output affected will reach 10,000 tons. Some smelters in Guangxi are still under maintenance, and the remaining smelters in South China and most of the smelters in Guangdong are affected by power curtailment to varying degrees. However, the impact on production is less.
Due to the arrival of the environmental protection inspection team in September, the output of a smelter in central China has been reduced by about 25%. The market supply is less affected, and the TC of domestic copper concentrates has exceeded $65/ton. Although the COVID-19 pandemic in Alashankou has disrupted transportation, the supply of raw materials in Xinjiang was only slightly affected. The price of sulphuric acid is running at a high level, and most smelters that have not received the notice of power curtailment have a high operating rate. The tight supply of copper anodes started as early as July. Although the RC of blister copper has picked up, this situation will continue.
In October, it will take some time for the Guangxi smelter to produce at full capacity. Several smelters in central China have already advanced maintenance plans for possible power rationing. Due to the limited power supply, the capacity utilization rate of the Jiangsu smelter remained at about 50%; due to the tight supply of copper anodes, some even slightly reduced production.
The domestic copper cathode output in October is expected to be 803,000 tons, the same month-on-month and a year-on-year decrease of 2.3%. Cumulative output from January to October is expected to be 8.29 million tons, a year-on-year increase of 8.9%.
SMM data shows that China's alumina production in September was 6.2 million tons, of which metallurgical alumina production was 5.99 million tons. The average daily output of metallurgical alumina was 199,500 tons, an increase of 0.46% month-on-month and an increase of 5.05% year-on-year. From January to September, my country produced 53.65 million tons of metallurgical alumina, a year-on-year increase of 7.74%. Domestic alumina prices continued to rise rapidly in September, stimulating some alumina plants to increase production. At the same time, Guangxi alumina production capacity is limited and the impact of electricity is relatively small. It is estimated that the net alumina import volume is about 350,000 tons, and the surplus of alumina in China in September is about 347,000 tons. It takes 1.925 metric tons of alumina to produce 1 metric ton of aluminum.
As of early October, China's metallurgical-grade alumina production capacity was 71.52 million tons/year, and the current production capacity was 88.6 million tons/year. SMM will monitor the impact of the North China heating season on local operations. It is estimated that in October (31 days), the output of metallurgical alumina will be 6.08 million tons, and the surplus of alumina will be about 289,000 tons.
According to SMM data, China's aluminum output in September (30 days) was 3.11 million tons, a year-on-year decrease of 0.10%, the first decline in nearly 21 months. The average daily output was 103,700 tons, a decrease of 300 tons from the previous month. From January to September, China produced 29.08 million tons of aluminum, a year-on-year increase of 6.01%. In late September, due to the dual control of power shortage and energy consumption, the production capacity of Inner Mongolia, Yunnan and Guangxi decreased. At the same time, Zhaofeng, Xinheng, Hengkang and other factories resumed production. At the beginning of October, China's operating aluminum production capacity was 37.45 million tons/year, while the existing production capacity was 43.75 million tons/year, and the operating rate was 85.6%. According to the SMM survey, liquid aluminum accounted for 64.6% of my country's total aluminum output in September, a decrease of 2 percentage points from August.
Aluminum production capacity may continue to decline in October. Qinghai and Ningxia may reduce operating rates without production recovery or new capacity commissioning. The aluminum output in October is expected to be 3.19 million tons, and the average daily output may fall to about 102,900 tons. Electricity curtailment will curb consumption during the traditional peak season. Aluminum stocks may rise slightly to 850,000 metric tons at the end of October.
China's primary lead production in September was 261,500 tons, a decrease of 5.62% from August and a decrease of 2.36% from the same period last year. From January to September, output increased by 4.55% year-on-year. The total production capacity of enterprises participating in the survey in 2021 is 5.48 million tons.
According to SMM research, due to power curtailment in Henan and the end of maintenance of some smelters, the raw lead output increased slightly in September. However, Xing'an Silver Lead in Inner Mongolia and Yongning Gold Lead in Henan are still under maintenance. In addition, in the middle and late September, the power limit in Hunan, Guangdong, Guangxi, Liaoning and other places increased, which affected the production of key enterprises to varying degrees. The decline in production in September was greater than the increase, and the decline in total production was even more pronounced than in August.
Looking ahead, more primary lead smelters will be overhauled in October, and most of them are deliverable brands. Therefore, production in October will continue to decline. Specifically, Hunan Shuikoushan, Shandong Hengbang, Jiangxi Copper, and Jiangxi Jinde all carried out 30-60 days of maintenance in October, which will be the main reason for the decline in raw lead production. On the other hand, in early October, the impact of power rationing in Hunan, Guangdong, and Liaoning continued. As the heating season approaches in North China, coal supply will be further tightened, which may exacerbate the power shortage. This factor may continue to affect the production of primary lead smelters in October. According to SMM estimates, domestic primary lead production in September is expected to drop by nearly 20,000 tons to 244,600 tons in October.
The national secondary lead production in September was 368,800 tons, a month-on-month decrease of 11.34% and a year-on-year increase of 32.12%. At the same time, the output of secondary refined lead was 365,400 tons, a decrease of 5.09% month-on-month and a year-on-year increase of 35.87%. The cumulative production of secondary refined lead from January to September increased by 40.11% year-on-year.
According to SMM research, the secondary lead output has fallen more than expected, mainly due to the following reasons: 1) The power curtailment policy was increased in late September, and some smelters in Jiangsu, Hunan, and Anhui reduced production; 2) Some smelters in Anhui, Guangdong, and Hubei The plant was overhauled during the arrival of the environmental inspection team; 3) Lead prices plummeted in late September, the smelter's production was unsuccessful, and the operating loss once expanded to more than 500 yuan/ton, which was the main reason for the decline in the production of recycled lead.
In October, as the environmental protection inspection came to an end, smelters in Guangdong, Hubei, Anhui and other places resumed production after the National Day holiday. As lead prices rebounded in October, the operating losses of recycled lead have also narrowed. However, some regions such as Anhui and Jiangsu still implement power curtailment policies. Due to the tight power supply, some smelters have been blocked from resuming production. In addition, smelters in Anhui Tianchang and Jiangxi Xinya also have maintenance plans.
Generally speaking, the increase and decrease in output among the various smelters will offset each other to a large extent. However, the profitability of secondary lead is still uncertain. Therefore, the production of recycled lead in October may fall again, but at a slower rate.
The national refined nickel output in September was approximately 14,300 tons, a month-on-month decrease of approximately 410 tons or 2.79%. The operating rate was 65%. The reduction in production was mainly due to the shutdown of a smelter in Jilin for maintenance. Production in other regions was stable.
Refined nickel production in October is expected to be 14,000 tons. The other two domestic smelters have no maintenance plans.
The metal content of domestic NPI production was 30,100 tons, a decrease of 25.22% from the previous month. The output of high-grade NPI decreased by 25.25% to 24,800 tons, and the output of low-grade NPI decreased by 25.09% to 5,400 tons. Double control of energy consumption was strengthened in September. Guangxi maintains its previous electricity curtailment policy. Since mid-September, NPI plants in Guangdong, Jiangsu, Shandong and other places and stainless steel plants with NPI facilities have begun to reduce or stop production. NPI output has shrunk significantly. In late September, the production of NPI and stainless steel was basically stopped, and production in Jiangsu was completely stopped. Shandong received a notice of a 20-30% reduction in production. Production in Guangxi, Hebei and Liaoning is unstable.
China is expected to produce 29,000 tons of refined nickel with a metal content in October, a decrease of 3.8% from the previous month. The output of high-grade NPI in October may be 24,700 tons of nickel content, and the output of low-grade NPI may stabilize at around 5,300 tons. The NPI's return to work rate in October may be lower than expected. Liaoning and Inner Mongolia have limited production during the northern heating season. Electricity curtailment and high prices of auxiliary materials have suppressed Shandong's enthusiasm for production. NPI supply may tighten.
In September 2021, China's nickel sulfate output was 127,000 tons, and the metal content was 27,900 tons, a decrease of 0.94% month-on-month and an increase of 101.2% year-on-year. Among them, the Ni content of battery grade nickel sulfate production is 26,200 tons, and the production of electroplating grade nickel sulfate Ni content is 1,700 tons. In terms of raw materials for nickel sulfate production in September, self-dissolving nickel briquettes and powders accounted for 50%, virgin materials (MHP/MSP/high-grade nickel matte) accounted for about 27%, waste materials accounted for about 18%, and the rest was crude sulfuric acid nickel. Some factories with nickel sulfate facilities in Hunan, Guangdong and other regions have reduced their output due to power cuts. However, the decline in nickel sulfate production is relatively small, and smelters in East China are still expanding their production.
In October, Hunan's power rationing resumed slowly, but the situation of Guangdong and Zhejiang power rationing was still severe. However, nickel sulfate production is less affected due to its low energy consumption. In addition, some of the new production capacity will be put into production in October. The production of nickel is expected to increase by 6.87% month-on-month to 29,800 tons, an increase of 75.32% year-on-year.
According to the SMM survey, the domestic stainless steel output in September was 2.22 million tons, a month-on-month decrease of 590,000 tons, a month-on-month decrease of 20.97%, and a year-on-year decrease of 19.75%.
From January to September, my country's total stainless steel output was 24.78 million tons, a year-on-year increase of 17.1%.
Guangdong and Jiangsu have strengthened the dual control policy of energy consumption, and the production of stainless steel has been strictly restricted. The overall operating rate dropped from 93% in August to 73.7%. The output of 200 and 300 series products dropped significantly. The output of the 200 series dropped by 258,200 tons from the previous month to 575,000 tons, a decrease of about 31%, and the output of the 300 series dropped by 295,000 tons to 1.18 million tons, a record low since February. The output of the 400 series products decreased slightly from 37,300 tons to 471,000 tons from the previous month.
Jiangsu's October electricity curtailment gradually picked up, and the operating rate is expected to pick up. However, under strict restrictions, the operating rates of Fujian and Guangdong are expected to further decline.
It is expected that stainless steel production in October will continue to fall to 2.19 million tons. The output of the 300 series may drop by 16,000 tons to 1.16 million tons, the output of the 200 series will drop by 589,000 tons, and the output of the 400 series will drop by 443,000 tons.
China's refined zinc production in September was 511,900 tons, an increase of 3,000 tons or 0.59% month-on-month, but a year-on-year decrease of 6.85%. The output from January to September was 4.55 million tons, a year-on-year increase of 3.06%. The SMM survey sample China's domestic refined zinc smelters produced 72,900 tons of alloy in September, a decrease of 2,539 tons from the previous month.
The SMM survey showed that the increase in domestic refined zinc supply in September was lower than expected. Since late September, the power curtailment situation in Hunan, Guangxi, Yunnan and other places has intensified. Some zinc smelters in Hunan stopped production in late September and did not resume production until after the National Day holiday. Other smelters have cut output by 30-50%. In late September, Guangxi’s power curtailment expanded and intensified. The impact of limited electricity in Yunnan is relatively small, and the total production of refined zinc in the local area has increased month-on-month as expected. A smelter in Inner Mongolia stopped production, and Shaanxi's output increased month-on-month. After the resumption of production, Gansu's output increased significantly.
The Hunan Smelter gradually resumed production in October. Electricity prices have risen by 20%, but it does not affect local production. Hunan's refined zinc output in October is expected to remain unchanged from the previous month. A smelter in Guangxi halted its power supply in October, and its output is expected to decline slightly. Some smelters in Yunnan plan to reduce their operating rates during low water periods. A smelter in Inner Mongolia resumed production, and the Xinjiang smelter resumed normal production after a power cut in October. It is expected that China's refined zinc production in October will decrease by 8,400 tons from the previous month to 503,500 tons. The Jiangxi Smelter has an overhaul plan in October, but there is no overhaul plan for other regions.
Tin production in September was 13,018 tons, down 4.7% month-on-month.
The reasons for the decrease in output are as follows: 1) Yunnan’s output was basically flat, some producers resumed production from the previous power cuts, while others reduced production due to concerns about price increases; 2) Inner Mongolia’s output fell in September and is expected to fall again in October , Because some manufacturers will carry out rectification in accordance with the requirements of the environmental protection inspection team; 3) Jiangxi's output is stable, and the technology upgrade only reduced production by 200 tons; on the other hand, although some smelters have received the notice of power curtailment, the specific measures are not clear. 4) Guangxi's output rebounded from the previous month in October, and a large local smelter chose to stop zinc production in October while conserving tin supply; 5) Affected by environmental supervision and power curtailment, the output of the Yangtze River Delta and the Pearl River Delta decreased in September.
In October, the output of Yunnan and Jiangxi may be the same as that of the month because there is no plan to increase production. With the resumption of production, the output of tin ingots in Guangxi is expected to increase by approximately 1,000 metric tons. After the power restriction policy is relaxed, output in other regions may also increase slightly.
According to SMM's estimates, the total domestic tin production in October may be 14,650 tons.
In September 2021, China's production of praseodymium and neodymium oxide (PrNd) was 5,814 metric tons, an increase of 1.6% from the previous month. The increase was mainly contributed by Sichuan, and production in other regions was basically the same.
In September, the output of PrNd in the rare earth separation plant using light rare earth ore as raw material in North China was relatively stable. Despite the impact of limited electricity, most companies still maintain PrNd production at the expense of relatively cheap lanthanum and cerium products. For rare earth sorting plants in southern China that use medium and heavy rare earth ore as raw materials, the import of Myanmar ore is blocked, and the electricity curtailment policy has also had a negative impact, and the output level is difficult to maintain. PrNd oxide output of a few companies dropped by about one-third. The output of praseodymium oxide in the rare earth separation plant using scrap steel as the main raw material remained stable. Many companies in Jiangsu have a greater impact on electricity restrictions, and the output of PrNd oxide has been reduced by nearly 90%, coupled with high production costs. There are also a few factories in Jiangxi that use waste as raw materials to record a production loss of about 50%.
With the end of the environmental inspection, the separation plants in Sichuan and Guangdong have resumed production. It is expected that the national PrNd oxide output will continue to increase month-on-month in October, reaching a high of 6,000 tons.
In September 2021, the domestic output of PrNd alloy was 5614 tons, a slight increase of 2.6% from the previous month, mainly due to the expansion of some factories.
Most metal factories mainly deliver long-term orders, and they also sign long-term contracts with upstream suppliers. Therefore, the overall output of PrNd alloy has been relatively stable. However, the quarter-on-quarter decline in output of some factories was mainly due to the downstream industries tending to stay away from high prices, and they chose to reduce the purchase of high-priced raw materials to mitigate risks.
Due to the impact of limited electricity, the price of auxiliary materials has risen, which has driven the production cost of rare earth products to rise. Some small and medium-sized magnetic material companies worry that subsequent purchases will become more difficult. Although the demand for metals has increased slightly recently, the energy consumption of metal factories is generally higher. In the context of continued power cuts, the output of PrNd alloys in October may only increase slightly from September.
SMM data shows that China's magnesium ingot output in September was 54,800 tons, a decrease of 10.92% month-on-month and 5.24% year-on-year. The total output from January to September was 618,900 tons, a year-on-year increase of 8.13%.
According to SMM research, Shaanxi's magnesium ingot output accounted for 54% of the country's total output that month, followed by Shanxi, which accounted for 26% of the country's total.
The operating rate of the magnesium ingot industry in September was 50.41%, down 11.22 percentage points month-on-month and 20.02 percentage points year-on-year. The operating rate dropped sharply in September, mainly due to the power curtailment policy implemented in the main magnesium ingot production areas controlled by energy consumption.
According to reports from major manufacturers, the average operating rate of magnesium plants has been around 40%. Due to the continued power rationing, October production may be 50,000 metric tons.
According to SMM data, China's magnesium alloy output in September was 15,400 tons, down 15.62% month-on-month and 23.00% year-on-year. The total output from January to September was 260,100 tons, a year-on-year increase of 31.99%.
The operating rate of the magnesium alloy industry in August was 28.47%, a decrease of 15.62 percentage points month-on-month and a year-on-year decrease of 23.12 percentage points. With the soaring price of magnesium ingots, the cost of magnesium alloy plants rose sharply in September. Magnesium alloy plants are facing difficulties in delivering old orders and executing new orders, and revenue cannot cover costs. As a result, the overall operating rate has dropped.
According to salespersons of some magnesium alloy manufacturers, the current magnesium alloy prices are high, and downstream industries refuse to accept it. If magnesium prices continue to run at a high level in the future, under cost pressure, the decline in the operating rate of the magnesium alloy industry will be even more serious. Due to weak production activities, the output of magnesium alloys in October may remain at 14,500 metric tons.
The domestic output of magnesium powder was 7,300 tons in September, an increase of 12.50% month-on-month. The average operating rate of the magnesium powder industry that month was 41.32%, an increase of 12.50 percentage points from August.
As most domestic steel mills have completed routine maintenance, the demand for magnesium powder by steel mills in September increased compared with that in August. At the same time, since most of the magnesium powder tenders of steel mills are scheduled at the end of the month, the suppression of downstream demand due to the surge in magnesium prices in September will affect the output of magnesium powder in October. Therefore, the output of magnesium powder in October is expected to drop slightly to 7,000 tons.
China's titanium dioxide output in September was 300,000 tons, down 0.94% month-on-month and 0.14% year-on-year. The total output from January to September was 2.82 million tons, a year-on-year increase of 12.60%.
In September, under the dual control of energy consumption, the production of titanium dioxide was suspended on a large scale, and the output of titanium dioxide decreased overall.
According to manufacturers in Guangxi, some areas of Guangxi are still implementing power curtailment, and it is uncertain whether the curtailment will continue until the end of the year. In the recent expansion of power rationing, the operating rate in South China and East China is declining. It is expected that the production of titanium dioxide in October will be reduced to 295,000 tons.
The SMM survey showed that the domestic industrial silicon output in September was 274,000 tons, a year-on-year increase of 25%, but a month-on-month decrease of 0.9%.
Production companies in Yunnan, Sichuan, Inner Mongolia, Hunan, and Fujian received power rationing notices in September to ensure that they complete their annual emission reduction targets. Therefore, the operating rate generally fell by 5-23%. However, the overall output in September fell only slightly because Xinjiang's production resumed that month.
It is expected that the production of industrial silicon in October will rebound to around 300,000 tons, because production activities in some provinces will resume.
The output of polysilicon in September was 41,700 tons, down 3% month-on-month and up 31% year-on-year. Jiangsu and Inner Mongolia reduced production due to power curtailment, and Shaanxi and Xinjiang also affected production activities.
The curtailment policy has restricted polysilicon production capacity to a certain extent. On the other hand, due to strict energy consumption control, production in many provinces may decline in the fourth quarter. Some polysilicon producers in normal production have received notices requiring them to reduce emissions. But the intensity is not specified.
Affected by maintenance, polysilicon production in October is expected to drop to about 40,000 tons.
In September, the domestic production of 1# silver was 1,186.544 tons (including 1,051.294 tons of ore silver), a decrease of 4.72% from the previous month, which was basically in line with the August SMM estimate. In the United States, Powell recently stated that if the economy continues to develop, the Fed may soon begin to scale back large-scale bond purchases. According to the Federal Reserve's resolution, the federal funds rate and discount rate will remain unchanged at 0%-0.25% and 0.25%, respectively. Economic development and the continued improvement of the job market have weakened the price of gold and silver. Gold and silver CFTC non-commercial net long positions are all in the mid-to-high position, and the long-term risks are gradually accumulating. Therefore, the price of silver in September was suppressed to a certain extent. Silver prices weakened in September, but the decline was limited. Under the influence of large fluctuations in the US dollar index, the fluctuation of silver prices may continue in the short term, and even greater fluctuations will occur. Silver prices may fall again after a sharp rebound in October.
Although market fluctuations have a certain impact on spot transactions, the impact on manufacturers' production is still relatively small. At present, the output of many manufacturers may increase or decrease due to the end or the beginning of maintenance. Yunnan Copper, Zhejiang Yadong, Baiyin Nonferrous, Jinlong Copper, Zhongyuan Gold and other statistical data for September production statistics have declined due to factors such as the National Day holiday, power curtailment or simple methods. But the actual production has been normal. In addition, Shaanxi Nonferrous Metals, Yubei Gold and Lead, Mengzi Mining, Gejiu Lianxing and other manufacturers have not resumed production; Gejiu Lianxing is expected to resume the production of 1# silver in October. The production of precious salt platinum, Jiangxi Longtianyong, Zhejiang Hongda, Shandong Zhaojin, etc. also saw substantial growth in varying degrees this month due to the gradual resumption of work or other reasons, which also hedged against the risk of falling silver supply from other manufacturers. As a result, production increased slightly. At present, the supply of silver-containing materials, including anode slime, is still tight. The pricing coefficient remains basically unchanged. The domestic silver production in October may drop slightly as a whole.
China's cobalt sulfate production in September is expected to be 5,335 tons of metal content, a decrease of 6% from the previous month, but an increase of 37% year-on-year. Some companies received power ration notices in late September. However, the energy consumption of cobalt sulfate production is relatively low, and it is less affected by restrictions. The output of cobalt sulfate declined slightly. Due to the rise in overseas cobalt prices, the cost of cobalt intermediate products from domestic smelters is higher. Most smelters are expected to expand production. China's cobalt sulfate production in October is expected to be 5,608 tons of metal content, an increase of 5% month-on-month and a year-on-year increase of 37%.
In September, China's cobalt tetroxide output was 6,226 tons, down 14% month-on-month and 3% year-on-year. The operating rates of Jiangsu and Hunan fell in September due to power curtailment. After the National Day holiday, the power rationing in Hunan Province was slightly relaxed, and the operating rate of local enterprises increased slightly. In addition, driven by the rise in overseas cobalt prices, the domestic price of cobalt tetroxide has risen, prompting companies to give priority to the production of cobalt tetroxide during power curtailment. The production of cobalt tetroxide in October is expected to increase by 5% month-on-month, but decline by 7% year-on-year to 6,561 tons.
China's lithium carbonate production in September was 19,557 tons, a decrease of 5% from the previous month, but a year-on-year increase of 22%. Electricity curtailment in Jiangsu and Shandong had little impact on lithium salt output at the end of September. The decline in the output of lithium carbonate refined from spodumene is mainly affected by limited electricity and geological disasters. The output of some new production lines in Hebei has increased, but the production lines are still in production. The output of lithium carbonate extracted from mica and salt lakes remained basically unchanged. The production of lithium carbonate in October is expected to be 20,625 tons, an increase of 5% month-on-month and 46% year-on-year, and power restrictions will be relaxed.
China's lithium hydroxide production in September was 16,418 tons, a month-on-month increase of 4.4% and a year-on-year increase of 35%. A large domestic smelter slightly reduced production in September due to equipment maintenance, further tightening domestic spot supply. Orders for high-nickel battery companies declined slightly. Demand for lithium hydroxide has gradually slowed down. The production capacity of some small and medium-sized smelters has increased. It is estimated that the national lithium hydroxide production in October will increase by 7.3% month-on-month and 57% year-on-year to 17,554 tons.
China produced approximately 37,435 tons of ternary cathode materials in September, a decrease of 2.4% from the previous month, but a year-on-year increase of 61%. In Hunan, Jiangsu, and Guangdong, power restrictions were imposed in mid-to-late September, and many ternary materials companies lowered their operating rates. Some companies have cut production by more than 50%. On the demand side, major battery companies maintain low purchases of high nickel ternary cathode materials. However, orders for high nickel ternary cathode materials from other battery companies have increased. Therefore, the overall demand for high nickel ternary cathode materials remains stable. There is strong demand for the 5 series and 6 series products in the power market, but some orders are delayed due to power cuts. The power market demand remained strong in October, but the electricity curtailment in Zhejiang Province expanded and output was limited. The output of ternary cathode materials in October is expected to be 35,696 tons, down 4.6% month-on-month, but up 41.7% year-on-year.
China produced 35,327 tons of LFP in September, an increase of 8.8% month-on-month and 84.1% year-on-year. In terms of supply, new production lines in some factories were put into operation last month, and the total output of new SMM samples increased. However, in the second half of September, the dual regulation of energy consumption intensified, resulting in tight power supply in Hunan and Guangdong, which affected the production and sales of LFP. The output of LFP in most factories has fallen, and some smelters have postponed their expansion plans. Approaching the fourth quarter, the growth in demand for new energy vehicles has driven the demand for LFP power batteries. Most LFP factories are receiving more and more orders. China is expected to produce 35,697 tons of LFP in October, an increase of 1% month-on-month and an increase of 80.2% year-on-year.
China's LMO production in September was 7,186 tons, down 12% month-on-month, but up 9% year-on-year. On the supply side, intensified national power curtailment has led to a shortage of industrial power. Some factories in severely restricted areas have ceased production. The cost of some key raw materials such as lithium carbonate and electrolytic manganese dioxide has risen sharply, while the price increase of living modified organisms is limited, severely squeezing the profits of some small and medium-sized living modified organisms enterprises. Most factories selectively accept orders, and output declines. The demand for living modified organisms continues to weaken due to rising prices leading to reduced cost-effectiveness. LMO production in October is expected to be 6,970 tons, down 3% month-on-month, but up 3% year-on-year.
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