China's SiMn output climbs 4.2% MoM in Jan

Among the five major production bases, output in North China's Inner Mongolia and Northwest China's Ningxia witnessed significant rises last month, while that in southern China fell by varying degrees, the survey results showed.

China's SiMn output in major production bases. (Unit: '000 tonnes)

Last month, SiMn smelters in northern China kept their production high as they were little impacted by local government restrictions on electricity use. Meanwhile, active buying among steelmakers also encouraged SiMn smelters to ramp up production.

However, more SiMn smelters in southern China slowed their production pace in January mainly in reaction to high smelting costs and the deep losses they suffered on sales, Mysteel Global learned.

Domestic SiMn prices declined again overall last month due to the fast recovery in production, while demand from steel producers fell short of market expectations.

As of January 31, the national price of 6517 SiMn under Mysteel's assessment was at Yuan 6,175/tonne ($860/t) including the 13% VAT, lower by another Yuan 75/t compared with the end of December.

Domestic prices of manganese ore recovered last month, mainly thanks to positive sentiment in the domestic market with the continuous fall in manganese ore inventories at the ports and hopes for better demand after the Chinese New Year holiday, Mysteel Global noted.

For example, the price of South Africa-origin 36.5% grade Mn ore at North China's Tianjin port was assessed by Mysteel at Yuan 32.8/dmtu including the 13% VAT as of January 31, higher by Yuan 2.5/dmtu on month.

Total manganese ore inventories at China's major ports emptied steadily in January to reach 4.89 million tonnes as of January 26, sliding for the sixth consecutive week or lower by 597,000 tonnes on month, according to Mysteel's weekly survey. The port stocks total was the lowest since late June 2022.

Written by Nancy Zheng, zhengmm@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com