Downstream Demand Remains Weak, EMM Production Decreases in January [SMM Analysis]

[SMM Analysis: Weak Downstream Demand Leads to Reduced EMM Production in January] SMM data shows that China's EMM production in January 2025 decreased by over 10% MoM but was up approximately 3% YoY. The main reasons for the production decrease in January were as follows: due to weak purchasing enthusiasm from downstream steel mills before the Chinese New Year, the incremental demand for EMM was limited, leading to strong production cut intentions among EMM plants. Production across EMM plants in various regions saw slight declines. Specifically, in Guizhou, due to tight ore supply and equipment maintenance, EMM plants implemented production cuts or shutdowns. In Hunan, rising electricity costs resulted in higher EMM production costs, causing most EMM plants to halt production. Additionally, some EMM plants planned furnace shutdowns and maintenance during the Chinese New Year, further reducing overall EMM supply. In February, the overall operating rate of manganese plants is expected to remain at 70% of capacity. Some EMM plants plan to conduct equipment maintenance around the Chinese New Year, and production is expected to remain reduced. Furthermore, due to the shorter natural month in February, the overall supply in the manganese market is expected to continue decreasing. Based on the production schedule survey of manganese plants, February production is expected to decrease MoM on the supply side.