China achieves record high silico manganese production in 2023

Manganese Production

For full-year 2023, total silico manganese output among the 187 Chinese smelters under Mysteel's regular tracking rose by a substantial 1.87 million tonnes or 19.4% on year to reach 11.52 million tonnes, marking the highest since Mysteel began regularly surveying their output in 2008. The sampled smelters host 99% of China's silico manganese smelting capacity.

Among the five major production bases, production of the ferro alloy in Southwest China's Guangxi dropped by 14.8% on year, while the volume in other bases increased by varying degrees, the survey showed.

In Guangxi, most local silico manganese smelters operated at a loss in 2023 due to high production costs, especially of electricity, so to mitigate the financial damage, many slowed their smelting pace or even halted operations, as reported.

During December alone, China produced 894,959 tonnes of silico manganese, down for the second month by another 84,859 tonnes or 8.7% on month, with the daily output reaching 28,870 tonnes/day on average, lower by 3,790 t/d or 11.6% from the prior month, according to the survey.

SiMn smelters in most production bases slowed their production pace or conducted maintenance on their smelting facilities last month in response to the losses they suffered on sales due to the weakening Silico manganese prices, Mysteel Global learned.

As of 29 December, the national price of 6517 SiMn under Mysteel's assessment came in at Yuan 6,250/tonne ($873/t) including the 13% VAT, lower by another Yuan 62/t compared with the end of November.

However, domestic SiMn prices recovered somewhat in the second half of December, mainly thanks to improved sentiment in the domestic market. Also, the recovery in manganese ore prices increased the production costs of Chinese SiMn smelters which, in turn, supported prices, 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 30.3/dmtu including the 13% VAT as of 29 December, up Yuan 0.3/dmtu on month or higher by Yuan 0.8/dmtu from the recent low recorded on December 19.

Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.