According to SMM, in July 2024, China's production of SiMn alloy was 884,300 mt, up 0.53% MoM but down 6.82% YoY. From January to July 2024, the production was approximately 5.8298 million mt, down 10.87% YoY. Although production in South China like Guangxi and Guizhou slightly decreased due to losses, producers in North China like Inner Mongolia and Ningxia still needed to fulfill previous orders, maintaining a high operating rate. Additionally, producers in Yunnan and Sichuan saw a slight increase in production due to the electricity price advantage during the rainy season. Overall, the increase in SiMn alloy production outweighed the decrease, leading to a rise in total production in July.
In August, some companies experiencing losses have already started furnace maintenance. Moreover, downstream demand for SiMn alloy was weak, providing insufficient support in the future. Both SiMn alloy plants in North and South China showed a strong intention to reduce or halt production. Therefore, the overall SiMn alloy production in August is expected to decrease to approximately 797,800 mt.
