【SMM Analysis：Downstream demand is weak,September SiMn alloy production decreased MoM.】

【SMM Analysis：Downstream demand is weak,September SiMn alloy production decreased MoM.】According to SMM data, China's total SiMn alloy production in September 2024 decreased by about 3% MoM and about 30% YoY. From January to September 2024, China's cumulative SiMn production fell by over 10% YoY. The main reason for the reduction in September SiMn production is that most SiMn plants in both north and south China reduced production. Specifically, in north China, such as Inner Mongolia, the high operating rate was maintained, and although some SiMn plants underwent maintenance, actual production fluctuations were minimal. In south China, due to severe losses on production and weak downstream demand, SiMn plants slightly reduced production. SiMn plants that had previously halted production due to production pressure have not yet resumed, leading to a significant reduction in overall production in the south. Overall, SiMn production continued to decline, with the total national SiMn production in September showing a decrease. Entering October, firm coke prices are driving up SiMn production costs. Due to production pressure, a significant improvement in the operating rate of SiMn plants is unlikely. Additionally, SiMn inventory is currently at a relatively high level, and production growth remains under pressure. Therefore, the overall SiMn production in October is expected to remain relatively stable.