Citi: Contemporary Amperex Technology (03750) September production may fall 3% month-on-month; short-term market sentiment is sluggish.

Citi released a research report stating that ZE Consulting estimates Contemporary Amperex Technology's (03750) September monthly production fell 3% month-on-month, with October monthly production likely roughly flat; combined with ongoing market concerns over battery demand, especially EV battery demand, this will continue to weigh on short-term market sentiment. According to ZE Consulting's latest production pipeline checks, battery and battery material components saw only modest mid-single-digit month-on-month growth in September monthly production, while lithium may see approximately 11% month-on-month growth. However, the bank understands that inventories continued to decline by 923 tonnes this week; if this momentum continues, the spot market may tighten in October.