SHANGHAI, Aug 15 (SMM) –
As reported by SMM, China's total output of SiMn alloy in July 2023 reached 949,000 mt, marking a month-on-month surge of 0.24% and a significant year-on-year leap of 39.34%. Between January and July 2023, the cumulative production of SiMn alloy in China approximated to 6.5411 million mt, reflecting a year-on-year growth of 5.25%.
The increment in SiMn alloy output this month can be primarily attributed to the robust operational rate in the Ningxia region. In contrast, some factories in Inner Mongolia underwent maintenance, marginally diminishing their production levels. In Guangxi, high electricity costs have led to a widespread phenomenon of production costs exceed the selling price, resulting in an upsurge in the number of companies curbing production or ceasing operations. Nonetheless, southern regions like Guizhou and Chongqing exhibited robust production performance.
On a broader perspective, the production growth in certain areas compensated for the decline in others. Coupled with the increase in the number of natural days in July, this resulted in an uptick in the overall national silicon-manganese production for the month.
Entering August, it is likely that certain furnace types within the Inner Mongolia region will continue to undergo maintenance. Additionally, there is potential for production cutbacks due to the implementation of dual energy consumption controls in Ningxia. As a result, we project a downturn in the total SiMn alloy output for August, with an estimated production of approximately 940,500 mt.
