[SMM Analysis] Both production and demand of EMM declined in July, with weak supply and demand dragging down performance

In July 2025, EMM production showed a dual decline, with a MoM reduction and a YoY drop as well.​

Behind the decrease in production this month was the simultaneous weakness in both supply and demand: downstream steel mills were in the traditional off-season, with sustained weak demand, and there were widespread production cuts in July. This directly affected the upstream — EMM plants became more cautious in their production approach, actively narrowing their production schedules, primarily to ensure the delivery of existing long-term contracts. Meanwhile, due to the short production cycle of EMM, enterprises generally lacked the willingness to stock up. Additionally, some manganese plants that had halted production for maintenance had not yet resumed operations, further exacerbating the tight market supply situation, ultimately forming a pattern of weak supply and demand.​

Looking ahead to August 2025, the market is expected to undergo a mild adjustment: downstream stainless steel demand is anticipated to recover slightly, and with the recent strong market sentiment of refusing to budge on prices, there is an expectation of further price increases. Driven by the potential expansion of profit margins, enterprises' production enthusiasm may be boosted. Overall, it is expected that the total EMM production in August will achieve a MoM increase, but the growth rate is anticipated to be relatively limited.​