Shanghai, December 8th (SMM)-This is an exclusive survey of major producers by SMM analysts, an overview of China's metal production in November 2021.
In November, my country’s cathode copper output was 825,900 tons, an increase of 4.6% month-on-month and a year-on-year increase of 0.5%
In November, the nationwide power rationing basically ended. The Shandong and Guangxi smelters completely cut off power and resumed production. In the first ten days of November, the output of Jiangsu and Zhejiang was limited slightly, but recovered quickly. In November, the total output of copper cathode basically returned to the level before the power cut.
Jiangxi Copper is in the maintenance period, but the stock of blister copper is sufficient. The two smelters in Guangxi have been overhauled and basically resumed production. The production cut is basically in line with market expectations.
In terms of raw materials, China's blister copper imports continue to run at a low level due to the impact of riots in Africa, shortage of port containers, and global supply chain issues. Due to the lack of blister copper, some smelters in coastal provinces cannot produce at full capacity. Most major ports in North China were closed under COVID-19 related control and prevention. The smelters in the northwest region were unable to increase the use of copper cathodes, which also dragged down the output of copper cathodes.
The price of sulphuric acid in the Yangtze River basin in central China has fallen rapidly, and the willingness of smelters to produce is low. The total output of copper cathode in November cannot rise to the level of the second quarter.
The shortage of blister copper and logistics problems in major northern ports in December will not be significantly alleviated, but the production of refined copper will be less affected. In order to achieve the annual output target, some smelters will be put into operation at the end of the year, and most smelters will be overhauled. The output in December is expected to recover to over 850,000 tons.
SMM data shows that in November (30 days), China's aluminum output was 3.07 million tons, a year-on-year decrease of 3%. The average daily output was 102,000 tons, the same as last month. From January to November, China produced 35.32 million tons of aluminum, a year-on-year increase of 4.35%. Aluminum production capacity rose slightly in November. Among them, Guangxi and Chongqing reduced production due to insufficient power supply. The output was also negatively affected by the accident at the Wenshan Aluminum Smelter in Yunnan. On the other hand, some smelters in Henan, Yunnan, and Inner Mongolia resumed production, which to a certain extent made up for the decline in output. At the beginning of December, Chalco's production capacity was 37.46 million tons/year, while the installed capacity was 43.75 million tons/year, and the operating rate was 85.6%. According to SMM research, liquid aluminum accounted for 62.4%, up 0.2% month-on-month.
Looking forward to December, supply is unlikely to decrease or increase significantly due to the resumption of production. The market will pay attention to the recovery of 300,000 tons/year production capacity during the accident. The December output is expected to be 3.18 million tons, and the daily output is 102,500 tons. In terms of demand, downstream processing companies will resume production slightly on the basis of previous power restrictions in Jiangsu, Zhejiang and Henan, and the fall in aluminum prices will drive downstream replenishment to pick up. By the end of December, the social aluminum ingot inventory may fall back to 910,000 tons.
SMM data shows that in November (30 days), China's alumina production was 6.24 million tons, of which metallurgical alumina production was 6.1 million tons. The average daily output of metallurgical grade was 203,300 tons, an increase of 4.14% month-on-month and 5.19% year-on-year. From January to November, my country produced 65.8 million tons of metallurgical alumina, a cumulative year-on-year increase of 6.93%. Due to the increase in alumina prices, some alumina refineries increased production, and the output increased month-on-month in November. In addition, Alcoa's operating capacity in November was 200,000 tons/year, which rose to 400,000 tons/year in November. Since the import window was opened throughout November, the net alumina imports are expected to be approximately 350,000 tons, while China's alumina surplus for the month is approximately 543,000 tons. It takes 1.925 metric tons of alumina to produce 1 metric ton of aluminum.
As of the beginning of December, my country's metallurgical alumina production capacity was 74.24 million tons/year, and the installed capacity was 88.6 million tons/year. The production activities of the oil refineries in Shanxi, Shandong and Hebei were not affected by air pollution restrictions during the heating season and the Beijing Winter Olympics in November. The December heating season policy and its impact on alumina production are worthy of attention. It is estimated that the output of metallurgical alumina in December (31 days) will reach 6.1 million tons, and there will be a slight surplus of 279,000 tons in the alumina market. The cumulative surplus for the entire 2021 will be approximately 1.12 million tons.
China's November primary lead production was 248,700 tons, a decrease of 1.75% from the previous month and a year-on-year decrease of 14.24%. Cumulative output from January to November increased by 1.55% year-on-year. The total production capacity of enterprises participating in the survey in 2021 is 5.48 million tons.
According to SMM research, major lead smelters carried out maintenance and resumed production at the same time in November, so the total output of the month was basically the same as the previous month. For example, smelters in Henan and Hunan finally got rid of the impact of power curtailment, and achieved annual production targets by increasing production before the end of the year, driving regional production increases. The smelters such as Henan Wanyang, Anyang Minshan, Hunan Shuikoushan, Jiangxi Copper, and Jiangxi Jinde underwent maintenance in October-November. In other words, the increase and decrease in output have largely offset each other.
Looking forward to December, Jiangxi Copper, Jiangxi Jinde, Shandong Hengbang, Henan Wanyang and many other smelters will complete their maintenance and resume production. Although some smelters such as Zhongjin Lingnan have begun maintenance during this period, overall output will remain stable. Less affected. The monthly output in December may increase month-on-month. Domestic primary lead production in October is expected to increase by more than 20,000 tons to 275,000 tons.
In November, my country's secondary lead output was 357,700 tons, an increase of 2.15% month-on-month and an increase of 25.98% year-on-year. Cumulative output from January to November increased by 55.01% year-on-year. At the same time, China produced 336,400 tons of secondary refined lead in November, an increase of 0.42% month-on-month and a year-on-year increase of 24.46%. Cumulative output from January to November increased by 51.57% year-on-year.
According to SMM research, in November, recycled lead was profitable, and most smelters were actively producing. For example, Tianchang in Anhui, Yichen in Shanxi, Zhenyu in Jiangxi, and Jinyi in Hunan have resumed production, but the actual output that month fell short of expectations. The reason is that the power curtailment in Anhui and Henan continues to restrict production, and the unplanned maintenance of some smelters due to equipment failure has a negative impact on the total output. At the same time, due to the cold winter weather, smelters in parts of Inner Mongolia stopped production. Therefore, even in the case of high profits, the secondary lead smelter slowly increased its output, and achieved only a small increase in November.
In December, the fifth batch of the second round of the central environmental protection inspection team has arrived in the four provinces. Anhui, Jiangxi and other places are also conducting solid waste inspections, restricting the production of some smelters. But on the other hand, the Anhui and Henan smelters that were previously restricted by electricity will resume production in December, creating additional supply. The total monthly production of recycled lead in December may increase by another 10,000 tons.
China's refined zinc output in November was 519,500 tons, an increase of 20,200 tons from the previous month, an increase of 4.05%, and a year-on-year decrease of 7.61%. The total output from January to November was 5.57 million tons, a year-on-year increase of 0.41%. In the SMM survey sample, the alloy output of domestic refined zinc smelters was 77,000 tons in November, an increase of 3,500 tons from the previous month.
The SMM survey showed that China's refined zinc output in November was basically in line with expectations. Part of the increase in production is due to the expected resumption of power rationing in Hunan, Guangxi, Henan, Gansu and Liaoning. The output increase of Guangxi Yushengge and Southwest Energy Mine exceeded expectations. The decline was mainly found in Jiangxi and Yunnan due to maintenance.
SMM predicts that the refined zinc output in December will increase by 13,300 tons from November to 532,800 tons, which is far below expectations, due to the decline in output due to maintenance in Huayuan, Hunan, and Shaanxi. Nevertheless, the resumption of production in Inner Mongolia and Jiangxi after or after the suspension of production will push up monthly production. The total output in 2021 is expected to reach 6.11 million tons, a year-on-year increase of 0.03%.
According to the SMM survey, domestic stainless steel production in November totaled about 2.63 million tons, an increase of 323,000 tons from the previous month, an increase of 14% from the previous month, and a year-on-year decrease of 10.2%. From January to November, my country's total stainless steel output was 29.72 million tons, a year-on-year increase of 10.23%.
The output in November increased from a month ago due to the relaxation of power rationing in some areas and the resumption of production. Among them, the output of 200 series stainless steel increased significantly, an increase of 164,000 meters from the previous month, mainly due to the recovery of production in Fujian and Guangxi. The output of 300 series stainless steel increased by 140,000 tons from the previous month, an increase of 11.3%, mainly due to the resumption of production in mid-November by a steel plant in Guangdong, which had previously stopped production. . In November, the output of 400 series stainless steel remained stable with little change.
In December, some steel plants will begin routine maintenance. Specifically, the 300 series will reduce production by 50,000 to 60,000 tons, and a certain steel plant and special steel plant in Jiangsu will be overhauled. However, production at the Guangdong steel mill will resume from government inspections. Therefore, the output in December will still increase compared to November. The output of the 200 series, 300 series and 400 series in December is expected to be 788,000 tons, 1.4 million tons and 447,000 tons respectively, for a total of 2.63 million tons. However, the month-on-month output in January 2022 may drop significantly, and most steel plants will enter the annual routine maintenance, which will have a greater impact on the total output.
Refined nickel
The domestic refined nickel output in November was 15,200 tons, an increase of 4.86% month-on-month, or 706 tons. The average monthly operating rate is 69%. The increase in refined nickel output in November was mainly due to the increase in Gansu output, which may fall back to normal levels in December.
The refined nickel output in December is expected to remain at around 14,500 metric tons. At present, the production activities of domestic smelters are relatively stable.
In November 2021, domestic NPI production increased by 3.74% month-on-month to 32,200 tons (nickel content). The monthly output fell by 20.87% year-on-year, indicating that this year's output was much worse than last year. The output of high-grade NPI was 26,600 tons (with nickel content), an increase of 2.3% month-on-month; the output of low-grade NPI was 5,600 tons (with nickel content), an increase of 11.3% month-on-month. In November, the NPI plant's production gradually recovered from the electricity curtailment policy, and Guangxi was normal. Guangdong also resumed production in mid-November, and production was stable in Jiangsu, Fujian, Shandong and other places. However, due to the cold weather in North China in winter, some ferronickel plants in Liaoning and Inner Mongolia were affected by heavy snow and their output declined. In addition, due to the approach of the Winter Olympics, in order to protect the blue sky, industrial production in the surrounding areas has been affected to varying degrees, and it is difficult for the output to reach the normal level.
Domestic NPI production in December is expected to increase by 6% from the previous month to 34,000 tons of nickel. The output of high-grade and low-grade NPI may be 28,400 metric tons and 5,8600 metric tons of nickel, respectively. The production of low-grade NPI is stable and the output fluctuation is small. After the NPI plant in North China adapts to cold weather, production may stabilize, but heavy snow will affect transportation. Guangdong has resumed production, and the output of high-grade NPI will increase.
In November 2021, China's nickel sulfate output was 28,800 tons of metal content and 131,000 tons of physical output, a decrease of 2.93% month-on-month and an increase of 78.6% year-on-year. The production of battery-grade nickel sulfate is 27,300 metric tons. In November, the amount of self-dissolving nickel briquettes (powder) accounted for about 53% of the total raw materials, virgin materials (MHP/MSP/high fog nickel) accounted for about 30%, scrap steel accounted for about 14%, and the rest was crude nickel sulfate. The nickel sulfate market was generally down in November. As the price trend is deadlocked, the profits of nickel sulfate manufacturers are not good. Some manufacturers carried out repairs in November. In addition, manufacturers with precursor capacity reduced production to control in-plant inventory by the end of the year. The total production of nickel content in December is expected to be 28,500 tons, a decrease of 1.76% from the previous month, because maintenance will be extended to this month.
China's refined tin production in November was 13,281 metric tons, a decrease of 8.05% from October. The decline in output is caused by many factors. First, the total output in Yunnan is basically the same as a month ago, although some smelters in Gejiu temporarily suspended production due to air pollution, which is in line with the estimates of SMM's previous research. Only a small amount of output was affected. Second, the impact on the supply of raw materials in Guangxi was less than expected, and the output declined only slightly from the previous month. However, due to environmental restrictions, the Jiangxi smelter stopped production for a period of time, and its output dropped sharply. According to the latest SMM survey, the smelter has basically resumed normal production. Finally, production in other regions increased slightly from the previous month in November. As production in these areas is fairly stable, production may remain stable in the near term.
In December, some smelters in Yunnan will continue routine maintenance until the end of December, which may affect the output of about 500 tons of refined tin. Due to the tight supply of raw materials, Guangxi's output may fall by 400 tons. Jiangxi's output may increase because smelters previously restricted by environmental protection requirements have basically resumed production. The output of other producing areas will remain unchanged in December. In short, SMM predicts that domestic refined tin production will reach 13,740 tons in December.
The output of polysilicon recovered from power curtailment and overhaul, and the output reached a new high in November
SMM data shows that in November, domestic polysilicon production was 42,800 tons, an increase of 5.9% month-on-month and a year-on-year increase of 20.2%.
In November, production activities were basically restored from previous restrictions such as power cuts and maintenance, so monthly output increased by more than 2,000 tons compared with the previous month. Xuzhou Zhongneng's new granular silicon production capacity will increase production in December. At the same time, new projects and technological transformation projects of companies such as Yongxiang New Energy and New Special Energy have been put into production, but they will not be put into operation until the first quarter of next year. Polysilicon production is expected to increase to 45,600 tons in December, continuing to hit a new monthly high.
The output of industrial silicon metal in 2021 hits a record high in the resumption of production
The SMM survey shows that in November, the domestic industrial metal silicon output was 300,000 tons, an increase of 10% month-on-month and a year-on-year increase of 29.5%.
The two major industrial silicon metal production areas in Xinjiang and Fujian contributed the most to the increase in November after the local resumption of production, and Yunnan silicon metal production companies also slightly increased their operating rates. Due to limited power supply and environmental protection inspections, Sichuan's output declined slightly from a month ago. Due to the severe COVID-19 pandemic, Heilongjiang Province hardly had any output in November.
The electricity price has adopted the southwest dry season pricing plan since November 26, which has been closely watched by the market. Electricity prices in Yunnan and Sichuan have been adjusted to varying degrees. Compared with the rainy season, the average electricity price is increased by about 0.3 yuan/kWh to about 0.6 yuan/kWh. In December, the cost of electricity for silicon metal production enterprises increased significantly compared with that in November, but there has been no large-scale reduction in production. Partly because the current industrial metal silicon is still quite profitable. However, due to the postponement of the rainy season in Yunnan this year, as of early December, the power supply of small hydropower projects in the region can support the production of most silicon metal production enterprises. The manufacturers in Sichuan will maintain production with extensive power grid supplementation, but a few will suspend production.
With the price of silicon metal falling near the break-even point, it is expected that the time for large-scale production cuts in the southwest region will be postponed to the end of December. It is estimated that the output of industrial silicon metal in December will be around 295,000 tons. Our forecast for the annual output is adjusted to 2.94 million tons, a year-on-year increase of 33.6%.
According to SMM statistics, China's magnesium ingot output in November was 71,200 tons, an increase of 11.43% month-on-month and an increase of 3.29% year-on-year. The total output from January to November was 753,900 tons, a year-on-year increase of 6.87%.
According to SMM research, the export of magnesium ingots was 24,300 tons in November, an increase of 43.78% from the previous month. Therefore, the operating rate of domestic magnesium ingots has increased, reaching 65.04% in November, an increase of 10.67 percentage points month-on-month and 10.13 percentage points year-on-year.
At present, the one-month ecological and environmental protection inspection has begun. The operators of the magnesium plant expressed uncertainty over whether the production of the magnesium plant will be affected in the future. Taking into account that the fourth quarter is the traditional peak season for magnesium ingot exports, based on the uncompleted overseas orders in November, it is expected that the output of magnesium ingots in December will continue to increase to about 74,000 tons.
According to SMM statistics, China's magnesium alloy output in November was 19,400 tons, an increase of 11.70% month-on-month and a year-on-year decrease of 44.15%. The total output from January to November was 297,700 tons, a year-on-year increase of 12.93%.
The SMM survey showed that the average operating rate of the magnesium alloy industry in November was 35.83%, an increase of 11.7 percentage points from the previous month and a decrease of 46.63 percentage points from the same period last year.
According to feedback from salespersons of some magnesium alloy manufacturers, demand from downstream enterprises in the Pearl River Delta region continues to weaken due to high magnesium prices. However, supported by the rebound in overseas orders, the overall operating rate of magnesium alloys has increased. The operating rate of leading enterprises has maintained a relatively high level, and the output of small alloy factories has recovered slowly. Considering that overseas demand is expected to improve in the fourth quarter, the output of magnesium alloy in December is expected to reach 21,000 tons.
SMM data shows that China's magnesium powder output in November was 8,900 tons, an increase of 7.63% month-on-month.
The average operating rate of the magnesium powder industry in November was 50.19%. Affected by the rebound in export orders in November, the overall operating rate increased month-on-month. Taking into account that the fourth quarter is the traditional peak season for exports, and the inventory demand before the Christmas holiday is relatively high, it is expected that the domestic output of magnesium powder in December will record a positive increase to 9,500 tons.
SMM data shows that in November 2021, the domestic production of molybdenum concentrate was 19,300 tons, an increase of 4.21% from the previous month.
Production in November increased slightly from the previous month. According to SMM's understanding, domestic mine production activities are generally stable, and the output of some mines has increased significantly after the resumption of production, leading to a slight increase in total output. Due to the continued short supply of molybdenum concentrate in December and the continuous increase in prices, the production enthusiasm of all mines is generally high. It is expected that monthly production in December will continue to increase.
The domestic production of ferromolybdenum was approximately 15,850 tons in November, an increase of 1,900 tons or 13.62% month-on-month. The domestic supply of ferromolybdenum has increased substantially.
Demand from steel mills rebounded overall in November. According to SMM research, in November, the bidding purchase volume of ferromolybdenum was about 9900 tons, an increase of 130% from the previous month. At the same time, ferromolybdenum production was boosted by the significant increase in orders received by manufacturers, and overall prices improved in late November. When the market is active, some traders and downstream companies are also considering stockpiling. Therefore, the production of ferromolybdenum has increased significantly. Due to active market transactions, some ferromolybdenum manufacturers' production plans continued until the end of December. It is expected that the output of ferromolybdenum will continue to rise in December.
In November, my country's high-carbon ferrochrome output was 623,900 tons, an increase of 189,200 tons from the previous month, an increase of 43.53%, and an increase of 25.96% over the same period last year. Inner Mongolia's output was 299,600 tons, an increase of 106,800 tons from the previous month, an increase of 55.39%. The power cuts in November were significantly eased. Ferrochromium plants are actively producing while profitable, and have increased the operating rate of delayed shipments of long-term contracts with steel mills. Domestic high-carbon ferrochrome production peaked in November.
China's high-carbon ferrochrome production is expected to be 581,200 tons in December, an increase of 15.13% month-on-month and a year-on-year decrease of 6.84%. Sichuan and Shanxi will continue to limit production under the winter environmental protection policy. After the arrival of the central environmental inspection team, some factories in Guizhou have cut production or stopped production for maintenance. In addition, the price has been falling recently, the price of chrome ore has been rising despite the low inventory, and the price of coke has also stabilized after falling. Therefore, some factories in southern China may suspend production due to high costs. Although the Beijing Winter Olympics will limit production, the output of Inner Mongolia is expected to remain high under the circumstances of low electricity prices and lucrative profits.
SMM data shows that China's silicomanganese output in November was 864,100 tons, an increase of 32.23% month-on-month, but a year-on-year decrease of 15.8%. The cumulative output from January to November was 9.85 million tons, a year-on-year increase of 4.96%. The average operating rate of the silico-manganese alloy industry in November was 56%, an increase of 19.1 percentage points month-on-month and a year-on-year decrease of 15.53 percentage points.
In November, there was basically no power cut, and the output of the main silico-manganese alloy production areas rebounded rapidly. However, downstream demand from steel mills is weak, and production restrictions are frequent. With the increase in supply, the price of silico-manganese alloy continues to fall. The cost of raw materials fell in November, but the production cost of the factory fell slowly because they were still producing the raw materials they had purchased at a high price. Profits are shrinking rapidly, and the factory may reduce production in the later period. The high electricity prices in Guangxi have put pressure on local power plants. Electricity prices will be further increased in December, and more power plants have ceased production. Affected by the central environmental inspection, Guizhou, Ningxia and other places may also reduce production. Therefore, the total output of silico-manganese alloy is expected to drop to about 751,600 tons in December.
In November, domestic EMM production was 91,400 tons, a decrease of 4.4% month-on-month and a year-on-year decrease of 23.3%. In November, the average monthly ex-factory price of EMM was 42243 yuan/ton, an increase of 2.58% from the previous month. The average monthly FOB price of EMM was US$6,850/ton, an increase of 5.64% month-on-month. As the final demand of steel mills is flat, it is expected that EMM prices will decline in the short term.
According to the SMM survey, China's battery-grade manganese sulfate output will be 24,500 tons in 2021, an increase of 4.3% from the previous month. At the end of the year, some producers increased production, demand fell, and prices fell due to a slight oversupply. However, most battery-grade manganese sulfate producers expect demand to increase next year.
China's production of praseodymium and neodymium oxide (Pr-Nd) in November 2021 was 6,044 metric tons, a decrease of 2% from the previous month. Production reductions are mainly in Jiangxi, Hunan, Guangxi, Sichuan and Shandong.
After completing its annual mining target, Baotou Steel plans to suspend production for maintenance in November, further tightening the domestic supply of rare earth mines, especially ion mines. Due to low inventory, ROM holders reduced shipments. Separated companies in Jiangxi, Hunan, and Guangxi cut production in November. The operating rate of separated enterprises in Jiangxi is between 70-80%. Due to the shortage of ROM and power cuts in some areas, the operating rate of some enterprises in Hunan is lower than 50%. Some enterprises in Shandong have tightened environmental protection inspections due to poor air quality, resulting in a slight decrease in output.
Sorting companies mainly rely on long-term orders, and spot stocks of praseodymium oxide and neodymium oxide are low. Separation companies focusing on waste materials maintained stable production of praseodymium and neodymium oxide, and some companies increased their production.
Some border ports in Yunnan opened in December. With the gradual completion of customs clearance of Myanmar ore, domestic miners' shipments increased. Some factories have increased the purchase of ROM. In December, the operating rate of some areas in the south is expected to rise, and the national output of praseodymium and neodymium oxide is expected to increase slightly to 6,150 tons.
SMM data shows that in November 2021, the output of Pr-Nd alloy was 5,574 metric tons, a decrease of 7.5% from the previous month. The reduction in production was mainly in Jiangsu, Guangxi, Sichuan and Gansu, and the increase in production was mainly in Zhejiang.
The shortage of rare earth ROM has led to a tight supply of neodymium praseodymium oxide, leading to a decline in the operating rate of praseodymium and neodymium alloy enterprises in Jiangsu, Guangxi, and Gansu. The output of Pr-Nd alloy declined slightly. At the beginning of November, the spot price of rubidium oxide stabilized at RMB 780,000-790,000/ton, which was pushed up to RMB 850,000-860,000/ton by the end of the month due to good market news. Due to the high cost of raw materials, some separated companies have reduced the purchase of raw materials and lowered the operating rate. After the power restriction was lifted, the operating rate of Zhejiang Pr and Nd alloy enterprises increased.
The long-term supply of rare earth ROM will remain tight, but the current shortage has been alleviated as the ore from Myanmar is being cleared. China's production of praseodymium and neodymium alloys is expected to increase slightly to 5,600 metric tons.
In November, the domestic production of 1# silver was 1,136.84 tons (1121.34 tons of ore-containing silver), an increase of 8.08% from the previous month, which was basically in line with SMM's October estimate. It is expected that the output in December will continue to increase slightly. At the end of November, the country’s foreign exchange reserves were US$3.22 trillion, an increase of US$4.8 billion from the previous month. Gold reserves reported 62.64 million ounces, unchanged from the previous month. According to the National Association of Business Economics, due to strong demand and other factors, the inflation rate in the United States will not remain high until at least 2023. Economists believe that supply chain bottlenecks, strong demand for goods and services, higher wages and stronger housing demand are the key factors driving the rise in US housing prices. 43% of economists expect supply chain bottlenecks will begin to ease in the second quarter of 2022. Therefore, under the condition of thin trading, the rebound of silver prices in November is limited. Silver prices are expected to fluctuate in a wider range under the influence of the US economy and the global COVID-19 pandemic, and maintain a downward trend in December, but the price rebound may be limited. Silver production is basically normal. The suspension and resumption of production were mainly due to the maintenance plan, and some factories increased their production significantly at the end of the year to achieve the annual production target. There were fewer companies that reduced production in November, including Jiangxi Lead-Zinc Copper, Shandong Humeng Smelting, and Jiangxi Longtianyong. Shandong Zhaojin, Guangdong Gold, Mengzi Mining and Metallurgy, Yunnan Revitalization, Baiyin Nonferrous Metals, China Platinum Metals, and other companies after resuming production or expansion at the end of the year increased significantly, driving the increase in total silver output in October. At present, the supply of silver-containing materials, including anode slime, is still tight, and the pricing coefficient has not changed much. The national silver output is expected to increase slightly in December.
In November, China's titanium dioxide output was 316,400 tons, a month-on-month increase of 0.15% and a year-on-year decrease of 2.04%. The cumulative output from January to November was 3.45 million tons, a year-on-year increase of 10.39%.
In November, the downstream procurement volume of titanium dioxide declined due to the off-season in the market, and some manufacturers lowered their quotations. Due to the expected weak demand in December, some titanium dioxide plants plan to suspend production for maintenance. The suspension will last from half a month to a full month. The production of titanium dioxide in December is expected to drop to 280,000 tons.
China's cobalt sulfate output in November is expected to be 5,489 tons, down 2.4% month-on-month and up 27.2% year-on-year. On the supply side, the rising cost of cobalt raw materials dragged down the production of cobalt salt, and the output declined slightly. Orders for cobalt sulfate decreased because terminal demand hardly increased, and ternary cathode material precursor producers reduced purchases to reduce inventory in the factory. High costs are expected to ease slightly, and supply may increase. China's cobalt sulfate production in December is expected to be 5537 tons of metal content, an increase of 0.9% month-on-month and 19.5% year-on-year.
In November, my country's lithium carbonate output was about 20,448 tons, an increase of 3% month-on-month and a year-on-year increase of 32%. The price of lithium carbonate hit a new high in November. Sichuan and Jiangxi OEM orders increased. The output of lithium extracted from spodumene has increased significantly by 13%. Jiangxi increased production by 9% due to abundant resources, while Qinghai was affected by severe weather and some production line shutdowns, and its production decreased by 22% that month. Major large-scale lithium carbonate manufacturers will start inspections during the Spring Festival in December. The production of lithium carbonate in December is expected to be 19,115 tons, a decrease of 7% month-on-month and an increase of 25% year-on-year.
In November, China produced approximately 42,791 tons of ternary materials, an increase of 10% month-on-month and 51% year-on-year. After the power restriction was lifted, the company maintained normal production, some large factories increased production, and total output increased. The increase in orders from major battery companies for the 5 and 6 series products is mainly due to the increase in demand from auto companies. Orders for high-nickel ternary cathode materials increased slightly, mainly from overseas power battery industry and high-end digital industry. The demand for the electric bicycle battery market and the digital market is weak. The overall demand for ternary cathode materials has increased. In December, domestic and foreign power battery market demand maintained a relatively high level, and orders for the electric bicycle battery market and the digital market increased steadily. It is estimated that China's ternary cathode material output in December will be 44,110 tons, an increase of 3% month-on-month and a year-on-year increase of 50.5%.
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