Strong Overseas Stockpiling Demand Drove Up EMM Exports [SMM Analysis]

According to the latest release from the General Administration of Customs, China exported 32,566 mt of unwrought manganese, scrap, and powder in June, up 13% MoM and 31% YoY. The exports of wrought manganese and manganese products were 3,630 mt in June, up 36% MoM and 140% YoY. The exports of EMM and manganese products in June were 36,200 mt, up 15.18% MoM.

In May, the overseas market showed low purchasing enthusiasm for EMM and mainly consumed inventory, leading to a significant reduction in stocks and the need for replenishment. Meanwhile, with the arrival of July, overseas steel mills will enter the summer break. It is expected that steel mills will increase their scheduled production after the summer break, bringing a higher demand for EMM. However, as domestic EMM prices showed an upward trend in June, steel mills were concerned that the traditional peak season after the summer break would cause EMM prices to continue rising. Therefore, overseas steel mills concentratedly stockpiled before the summer break, resulting in an increase in EMM purchases and a MoM increase in exports.