SMM data showed that SiMn alloy production in China in November totalled 926,100 mt, down 9.91% MoM but up 12.13% YoY, bringing total output in the first eleven months of 2023 up to about 10.452 million mt, up 14.36% YoY. In northern China, the operating rate of SiMn alloy plants remained high in Inner Mongolia. Some plants added new capacity, but their actual output was limited. In Ningxia, weak costs and large energy consumption fuelled production cuts. In southern China, falling price was the major factor denting SiMn alloy output. Overall, SiMn alloy output ceased increasing and started dipping in November.
In December, prolonged price weakness increased likelihood of production cuts or halts of some SiMn alloy plants. Annual SiMn alloy output hike was higher than crude steel output uptick, and more SiMn alloy plants were eager to sell off. Therefore, price softness will make it difficult to maintain the operating rate of SiMn alloy plants. SiMn alloy production may keep shrinking to about 835,500 mt in December.
