Triple squeeze sends China’s SiMn exports plunging in June

According to the latest data released by the General Administration of Customs, SMM statistics indicate that China exported 3607.39 tons​ of silicomanganese in June 2026, marking a  41.70% month-on-month​ decline and  213.25% year-on-year​ increase. Total exports for January–June 2026 reached 24856.28 tons, up 76.68%​ year-on-year.

The June export volume witnessed a cliff-edge plunge, primarily driven by a triple squeeze: domestic supply priority, weak overseas demand, and restrained selling amid losses.

Firstly, domestic rigid demand took precedence.​ Due to high shut-down costs, manganese alloy capacities in regions such as Inner Mongolia and Ningxia maintained baseline operating rates, creating a structural "base consumption" of silicomanganese. Producers prioritized fulfilling domestic long-term contracts and steel mill orders, significantly tightening the availability of exportable cargoes.

Secondly, overseas demand weakened seasonally.​ Entering the traditional off-season in June, downstream overseas steel mills largely concluded their restocking cycles. Coupled with declining global crude steel output, appetite for fresh purchases diminished, leading to heightened wait-and-see sentiment among international buyers and a pause in bulk procurement.

Thirdly, financial losses dampened selling appetite.​ With domestic silicomanganese prices in persistent decline throughout June—pushing southern producers deep into the red while squeezing margins in the north—alloy plants exhibited low willingness to sell. Producers became highly cautious about accepting export orders below cost, further suppressing shipment volumes.

In terms of trade flow structure,​ Indonesia remained the sole destination for China’s silicomanganese exports.

Regarding the sustainability of future exports:​ At the macro level, close attention must be paid to how shifts in the global economic environment transmit to the broader silicomanganese market. On the fundamental side, the focus should remain on the recovery pace of overseas steel production demand, as well as changes in domestic production capacity adjustments and cost control strategies.