SMM Analysis Of China SiMn Alloy Production In May And Forecast For June

According to SMM, China's SiMn alloy output was 803,700 mt in May, up 3.30% MoM but down 13.96% YoY. In January-May, the production totalled approximately 4.0659 million mt, down 12.47% YoY. High-priced manganese oxide ore provided strong cost support, leading to an upward trend in SiMn spot prices in May. Consequently, SiMn alloy producers with manganese ore inventory were motivated to increase production due to expanding profits. Therefore, the SiMn output nationwide increased in May.

Entering June, SiMn alloy producers in Inner Mongolia and Guangxi, who underwent maintenance in May, prepare to resume production. Demand side, some SiMn alloy producers have orders scheduled until June, and SiMn alloy procurement volume by mainstream steel mills in June is expected to increase MoM. Therefore, the overall SiMn alloy output in June is expected to rise to approximately 810,700 mt.