SMM analysis on China June DMC output and July forecast

According to SMM, China's DMC output in June was 206,000 mt, down 0.72% MoM. The total output in H1 was 1.1654 million mt, up 17.72% YoY. The supply slightly slowed down, and some facilities underwent maintenance in June, leading to a slight decrease in operating rates. SMM expects a slight increase in July production due to the production ramp-up of newly commissioned DMC capacity. The domestic DMC output in July is expected to reach 211,500 mt.