SMM China July EMM Production and August Forecast

According to SMM, China's EMM output in July 2024 was 100,100 mt, up 0.56% MoM and 70.77% YoY. From January to July 2024, the total output was approximately 584,000 mt, up 14.35% YoY. Although some EMM plants slightly reduced production due to weak downstream demand, most large EMM plants maintained 70% of their capacity. Additionally, some EMM plants in Hunan that had previously halted production resumed operations. Overall, the increase in EMM output outweighed the decrease, resulting in a slight increase in total EMM output in July.

Entering August, due to the off-season for downstream steel mills, their enthusiasm for purchasing EMM was weak, and some EMM plants have already shut down for maintenance. Furthermore, some EMM plants' own mines are undergoing rectification, leading to a tight supply of manganese carbonate ore. EMM plants are willing to reduce production, and overall EMM supply decreases. Based on the scheduled production survey of EMM plants, the output in August is expected to reach approximately 99,400 mt.