SMM Analysis on China November SiMn Alloy Production and December Forecast

According to SMM data, China's total production of SiMn alloy in November 2024 increased by approximately 4% MoM but decreased by over 20% YoY. From January to November 2024, China's cumulative SiMn alloy production decreased by over 8% YoY. The moderate bidding prices by steel mills, coupled with positive news stimuli, led to a high operating rate of producers in north China. Although some manufacturers halted furnaces for maintenance, overall, the increase in SiMn alloy production in north China outweighed the decrease. In south China, due to production pressure, the resumption of SiMn alloy production was slow, with some plants in Guangxi slightly reducing production, while some in Guizhou resumed production. Overall, the total national SiMn alloy production in November showed an increase.

In December, some SiMn alloy plants plan to conduct maintenance at year-end, leading to a slight decline in the operating rate. Additionally, manganese ore inventory at southern ports remained low, and miners' sentiment to stand firm on quotes was strong, with manganese ore prices expected to rise. Due to the increase in raw material costs, some SiMn alloy plants in south China are expected to halt production due to increased production pressure. Therefore, the overall SiMn alloy production in December is expected to decrease.