Production Costs Result in Significant Losses; SiMn Production Declines MoM in April [Analysis by SMM]

[SMM Analysis: Severe Losses in Production Costs Lead to MoM Decline in SiMn Alloy Production in April] SMM data shows that in April 2025, China's total production of SiMn alloy decreased by approximately 9% MoM and over 12% YoY. The main reason for the decline in SiMn production in April was that, although regions with relative cost advantages in the north, such as Inner Mongolia and Ningxia, maintained high operating rates compared to the south, severe losses in production costs at SiMn plants led to production cuts and suspensions. In the south, due to relatively high prices of raw materials such as manganese ore, production pressures remained significant, prompting some SiMn plants to suspend production. Overall, both northern and southern SiMn plants experienced production cuts and suspensions, resulting in a slight decrease in overall SiMn production in April. As of May, SiMn inventory remains at a high level. With the traditional off-season for steel consumption approaching in May, the supply surplus in the SiMn market remains unchanged. SiMn plants still have varying degrees of production cut and suspension plans. It is expected that the production schedule and transaction volumes of SiMn will remain under pressure in the near future. Therefore, overall SiMn production in May is expected to continue to decline.