SiMn Alloy Production Losses: Industry Meeting Calls for Proactive Production Reduction [SMM Analysis]

Although the price of manganese ore slightly decreased in July, it remained high, leading to elevated production costs for SiMn alloy. As a result, SiMn alloy producers faced losses, and the entire industry fell into severe losses. Currently, SiMn alloy producers show a weak willingness to sell, with many suspending quotations.

Supply side, SiMn alloy producers in south China, affected by losses, showed a strong willingness to reduce or halt production. However, the reduction in north China did not meet expectations. Demand side, downstream steel mills, affected by high temperatures and other factors, also experienced some reduction or suspension in production, leading to low enthusiasm for purchasing SiMn alloy. Overall, the SiMn alloy market remained in a state of oversupply, and SiMn alloy prices continued to weaken.

To promote the healthy development of the manganese-based alloy market, alloy enterprises held a meeting. Due to the current nationwide monthly production of SiMn alloy still exceeding demand, social inventory accumulated. Therefore, the enterprises attending the Inner Mongolia meeting believed that industry self-discipline should be strengthened to prevent 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. At the same time, they advocated 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.