【SMM Analysis：Steel mill consumption weakened, emm production decreased in august.】
【SMM Analysis：Steel mill consumption weakened, emm production decreased in august.】According to smm data, china's emm production in august 2024 decreased by approximately 0.8% mom, but increased by over 20% yoy. from january to august 2024, china's total emm production increased by over 20% yoy. the main reasons for the decrease in august production are as follows: although most emm plants had stable production schedules in august, production in guangxi and guizhou regions significantly decreased. specifically, some emm plants in guangxi temporarily shut down for maintenance due to severe losses on production; in guizhou, major emm plants reduced production significantly due to decreased orders from steel mills, which were in a low-demand season for emm. despite the increased production from emm plants resuming operations in hunan and yunnan, the overall increase in emm production was smaller than the decrease, resulting in a slight overall reduction in august emm production.
Entering september, due to limited increase in downstream steel mill demand, the enthusiasm for emm procurement remains weak, and emm plants have a strong inclination to reduce production. additionally, some emm plants are expected to suspend production due to production pressures. based on the production schedule survey of manganese plants, the supply side is expected to see a decrease in production in september mom.
