SHANGHAI, Jun 9(SMM) -

The domestic output of silicon-manganese alloy stood at 933,200 mt in May (including 60,000 mt of high-grade silicon manganese, 873,200 mt of regular silico-manganese), down 4% on the month and 11% on the year, according to SMM estimate. The domestic output of silicon-manganese alloy stood at 4.7084 million mt in January to May, a decrease of 4% year on year.

According to SMM research, the reasons for the slight decrease on the month in silicon-manganese alloy output in May are as follows: During May, the China Ferroalloys Industry Association(CFIA) called on ferroalloy enterprises to reduce production to alleviate the oversupply. Although the actual reduction was limited, some retail-based enterprises still cut production under cost pressure. 

In June, the Qinzhou Power Supply Bureau of Guangxi Autonomous Region issued a notice on the preferential electricity consumption in June and July. According to SMM research, electricity prices in Guangxi will basically be settled according to this notice, and the electricity cost will be reduced by about 600 yuan/mt.

Therefore, under the advantage of the electricity prices, many enterprises in Guangxi have resumed production. It is expected that the output of Guangxi in June will increase significantly from the previous month.

In addition, there has not been too much news of production reduction and shutdown in other regions, and the market remained cautious. SMM estimates that the output in June will be about 973,200 mt.