SHANGHAI, Aug 14 (SMM) –
Data from SMM reveals that China's electrolytic manganese metal (EMM) production for July 2023 reached 58,600 mt, marking a monthly decrease of 1.71% and an annual decline of 43.44%. Between January and July 2023, the cumulative EMM production in China was around 612,800 mt, indicating a year-on-year surge of 33.65%.
The fall in July's production primarily stemmed from two factors: although most small factories recommenced production operations after July 10th, a handful of large-scale factories had premeditated plans to curtail production in July. This led to a net reduction in output across EMM factories.
Regarding demand, there was an uptick in the total output of crude stainless steel nationwide in July, predominantly in the 300 and 400 stainless steel series, while the production volume of the 200 series remained relatively stable. Also, given that EMM's economic viability still lags behind that of ferromanganese, downstream consumers largely maintained essential procurement, keeping EMM price trends under constant pressure.
As we move into August, there's an anticipation of increased production across domestic steel mills, buoyed by the industry's positive outlook towards the forthcoming peak consumption season. Conversely, many overseas steel mills remain in their summer recess period. In light of the rapidly falling EMM prices, a significant number of market players are adopting a wait-and-see approach with limited trading activity, projecting an uptick in procurement once market prices bottom out. Moreover, as EMM solidifies its role as an economically viable source of manganese for steel mills, it could potentially enhance its market penetration in the stainless steel sector. Consequently, the total volume of EMM released this month is expected to trend upwards. Based on production surveys from manganese factories, an approximate output of 77,100 mt is forecasted for EMM output in August.
