Although the price of manganese ore slightly decreased in July, it remains high, leading to elevated SiMn production costs. SiMn alloy producers are experiencing losses, and the entire industry is facing severe losses. Currently, SiMn producers have a weak willingness to sell, with many suspending quotations.
Supply side, SiMn producers in south China, affected by production losses, have a strong willingness to reduce or halt production. However, the reduction in north China has not met expectations. Demand side, downstream steel mills, affected by high temperatures and other factors, have also shown some reduction or suspension in production, leading to low enthusiasm for purchasing SiMn. Overall, the SiMn market remains in a state of oversupply, and SiMn prices continue to weaken.
To promote the healthy development of the manganese alloy market, alloy enterprises held a meeting. Due to the current nationwide monthly production of SiMn alloy still exceeding demand, resulting in social inventory backlog, the enterprises attending the Inner Mongolia meeting agreed to strengthen industry self-discipline to prevent "involution" vicious competition. Starting from August, they plan to autonomously reduce production to support the market price, expecting a 30% reduction based on the current production levels. Additionally, they aim for rational production and sales, firmly resisting malicious market shorting and unreasonable price suppression in alloy procurement, to jointly promote and maintain a long-term healthy market environment.
