SMM

According to SMM data, China's total SiMn alloy production in September 2024 decreased by about 3% MoM and about 30% YoY. From January to September 2024, China's cumulative SiMn alloy production fell by over 10% YoY. The main reason for the reduction in September was the production cuts in most SiMn alloy plants in both north and south China. Specifically, in north China, such as Inner Mongolia, the high operating rate was maintained, and although some SiMn alloy plants underwent maintenance, the actual production fluctuation was minimal. In south China, due to severe losses on production and weak downstream demand, SiMn alloy plants slightly reduced production. The SiMn alloy plants that had previously halted production due to production pressure have not yet resumed, leading to a significant reduction in overall production in the south. Overall, SiMn alloy production continued to decline, with the total national SiMn alloy production showing a decrease in September. Entering October, firm coke prices are driving up SiMn alloy production costs, and due to production pressure, a significant increase in the operating rate of SiMn alloy plants is unlikely. Additionally, as the current SiMn alloy inventory is at a relatively high level, production growth remains under pressure. Therefore, the overall SiMn alloy production in October is expected to remain relatively stable.