Global SiMn output fell 5% in 2022

Global silicomanganese production declined by 4.9% on year to total 16.6 million tonnes in 2022, according to Zhou Jian, chairman of the China Committee of the International Manganese Institute, with the reduction mainly reflecting lower output in major production areas such as China, Europe and Commonwealth of Independent States (CIS) countries last year.

Addressing delegates attending the 13th China Ferroalloy Industry Conference in Hangzhou in East China's Zhejiang on February 28, Zhou noted that China produced 10.6 million tonnes of SiMn last year, lower by 8% from 2021. However, total output in Europe and the CIS fell by a sharper 11% on year to about 1.8 million tonnes due to high energy costs and the impact of the tensions between Russia and Ukraine.

"The electricity price in many European countries in the first half of 2022 was about 300-400% higher than the average during the same period over 2016-2021, due to the tight supplies of fossil fuels and the reduction in natural gas exports from the largest exporter, Russia," Zhou explained.

For most smelters worldwide, the electricity cost accounts for about 30% of the total production cost of SiMn, Mysteel Global learned.

However, SiMn output in India grew strongly last year, rising by 12% on year to 2.5 million tonnes, as Indian exports of this ferroalloy jumped by 21% on year, according to Zhou's report. India's domestic SiMn consumption also gained 6% compared with the prior year.

"About half of all SiMn produced in India was exported last year, higher than the portion of 45% in 2021," Zhou said.

Global SiMn consumption also decreased in 2022, with the total volume down 8.8% on year at 16.03 million tonnes. Last year, SiMn consumption in China slipped by 11% on year to 10.7 million tonnes, while the volume in Europe and CIS countries saw the largest on-year fall of 19% to reach 1.6 million tonnes, the report showed.

Written by Nancy Zheng, zhengmm@mysteel.com

Edited by Zhenqi Yang, yangzhenqi@mysteel.com

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