Citi has released a research report indicating that ZE Consulting estimates CATL (03750) saw a 3% month-on-month decline in September production, with October output likely to remain roughly flat. This, combined with ongoing concerns over battery demand—particularly for electric vehicle batteries—is expected to continue weighing on short-term market sentiment.

According to ZE Consulting's latest production pipeline checks, battery and battery material components registered only modest mid-single-digit month-on-month growth in September, while lithium is projected to see around 11% month-on-month growth. However, the bank noted that inventories have been declining by 923 tonnes this week; if this trend persists, the spot market could tighten in October.