Market and product

China's new energy vehicle output fell 36.9% year on year to 110,000 units on November, continuing year-on-year declines posted each month since July, but up 15.8% year from October, the China Association of Automobile Manufacturers said Tuesday.

The country's NEV sales fell 43.7% on year to 95,000 units in November, also continuing year-on-year declines posted each month since July, but up 26.7% on month, the CAAM data showed.

Negative growth was expected for both NEV output and sales in 2019, said CAAM deputy secretary-general Chen Shihua.

The downturn in the NEV market was a drag on the performance of power battery markets entering the traditional peak season, which was also reflected in declining battery metals prices.

The loading volume of power batteries fell 25.9% on year to 6.3 GWh in November, but was up 54.3% on month, according to separate data released by the China Automobile Power Battery Industry Innovation Alliance on Monday.

The loading volume of ternary batteries fell 30.% on year to comprise 3.8 GWh of the total, while lithium iron phosphate or LFP batteries fell 24% on year to comprise the balance 2.5 GWh, but posted a 132.3% surge from October.

Power battery output over January-November totaled 79.2 GWh, up 29.3% on year. LFP output comprised to 26.5 GWh of the total, notably up 2.8% on year.

CAAM in late October lowered its forecast for NEV sales to 1.4 million units for 2019 from 1.5 million units earlier. Market observers had earlier estimated total NEV sales in 2019 at 1.26 million units, stable from the year before.

S&P Global Platts most recently assessed battery grade lithium carbonate at Yuan 53,000/mt ($7,530/mt) last Friday, down Yuan 1,000/mt from the week before. Lithium hydroxide fell Yuan 1,000/mt over the same period to be assessed at Yuan 57,000/mt. Both assessments are on a delivered, duty paid China basis.

Market sources said the operating rates of cathode materials producers were currently below 50% of capacity due to reduced orders from battery makers, and expected lithium chemicals prices had yet to hit bottom. - Platts -