SiMn plants continue to incur losses, with SiMn production down MoM in May [SMM Analysis]

[SMM Analysis: SiMn Alloy Plants Continue to Incur Losses, with SiMn Production Declining MoM in May] According to SMM data, China's total SiMn alloy production in May 2025 decreased by over 6% MoM and over 20% YoY. The main reason for the decline in SiMn production in May was that, despite the higher operating rates maintained in north China regions such as Inner Mongolia and Ningxia due to their cost advantages compared to south China, the continuous decline in spot SiMn prices led to sustained losses for SiMn alloy plants. As a result, production cuts or shutdowns persisted in some plants, contributing to an overall reduction in production. Entering June, as the terminal steel market for SiMn entered the off-season for consumption, the supply surplus of SiMn intensified, leading to a continuous increase in in-plant inventory at SiMn alloy plants. Plans to cut or suspend silicon production continued. Additionally, with fewer calendar days in June, it is expected that SiMn production schedules will remain reduced in the coming market.