Steel Mills Make Just-in-Time Procurement as December SiMn Alloy Production Increases Again [SMM Analysis]

[SMM Analysis: Steel Mills' Just-in-Time Procurement Drives SiMn Alloy Production Increase in December] According to SMM data, China's total SiMn alloy production in December 2024 increased by over 3% MoM but decreased by over 9% YoY. From January to December 2024, China's cumulative SiMn alloy production declined by over 10% YoY. The main reasons for the production increase in December were as follows: although some SiMn alloy plants conducted maintenance near year-end due to equipment issues, leading to a slight production decrease, certain SiMn alloy plants in north China that had started production earlier began operations, keeping the overall operating rate in the main production areas in the north at a high level, resulting in a slight production increase. In south China, due to production pressure, previously halted SiMn alloy plants had no production resumption plans, while some major SiMn alloy plants increased their operating rates to fulfill long-term contract orders, leading to a significant production increase. Overall, the production increase outweighed the decrease, resulting in a nationwide SiMn alloy production increase in December. Entering January, some SiMn alloy plants are expected to conduct maintenance around the Chinese New Year, focusing on selling inventory, with production expected to decrease slightly. Additionally, steel mills' pre-holiday stockpiling demand is limited, and insufficient alloy demand support in the market is expected to lead to a stronger production reduction outlook.