SHANGHAI, Feb 9 (SMM) - China produced 935,100 mt of silico-manganese alloy in January, up 6.72% MoM and 6.61% YoY, according to SMM statistics. The main reason for the increase in silico-manganese alloy is aggressive pre-CNY stockpiling by steel mills, ensuring brisk orders and shipments. On the other hand, operating rates in south-China slid as the high costs and power rationing in some regions forced some small plants to cease production during CNY holidays. Most of the producers in north-China maintained normal production, and the output increased month-on-month.
Entering February, the market gradually recovered after the CNY holidays. Steel mills will be restarting their production, hence growing demand for silico-manganese alloy. In addition, most of the plants in north China maintained normal production, and the producers in south-China that shut down before CNY holidays resumed production. The overall operating rate increased. The output of silico-manganese alloy is projected to grow to around 968,600 mt in February.
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