SHANGHAI, Oct 12 (SMM) - China produced 41,900 mt of EMM in September, down 20.83% MoM and 60.19% YoY, according to SMM statistics. The combined output from January to September totalled 557,300 mt, down 35.03% YoY. The output fell in September mainly due to weak demand amid high manganese prices as well as sluggish demand in the stainless steel sector, while the demand for EMM is concentrated in special steel and alloy. The market transactions were in a stalemate. A large manganese factory suspended the production for maintenance amid the tug-of-war between suppliers and buyers, which takes up more than 50% of the market share in China. Therefore, though some manufacturers resumed the production in the month, the increase was completely offset by the production cuts.
This large factory is expected to remain under maintenance in October, hence market supply will keep falling, restoring the supply and demand balance of EMM. But small factories are with few in-plant stocks. Therefore, although the demand is relatively weak, some manufacturers are willing to resume the production in light of low raw material prices. Considering their relatively low market share, the output growth in October will be limited, and the monthly output is estimated at 43,600 mt.
