Latest Update in the SMM Silicon Market

In November 2024, China's production of high-purity manganese sulphate increased MoM but showed a significant YoY decline......

【SMM Analysis：Downstream Alloy Plant Demand Weakens, November Manganese Ore Imports Decrease MoM.】According to the latest release from the General Administration of Customs, SMM statistics show that China's total manganese ore imports in November 2024 were 2.2 million mt, down 24.88% MoM and 26.12% YoY. From January to November, cumulative imports totaled 26.79 million mt, down 15% YoY. In November, Australian ore imports were 101,200 mt (up 64.3% MoM); South African ore, 1.2383 million mt (down 26.62% MoM); Gabonese ore, 345,200 mt (down 17.58% MoM); Ghanaian ore, 305,500 mt (down 24.36% MoM); Brazilian ore, 105,300 mt (down 32.61% MoM); and Myanmar ore, 41,800 mt (up 868.82% MoM). Manganese ore imports from South Africa and Gabon decreased significantly, while imports from Australia increased. The primary reason for the MoM decrease in November manganese ore imports was the relatively high manganese ore inventory at Chinese ports, coupled with weak demand from downstream alloy plants, leading to lower purchasing enthusiasm for manganese ore. Overall, the supply surplus in the manganese ore market remains unchanged, and upward momentum for manganese ore is under pressure. To maintain supply-demand dynamics, overseas mines have adopted policies such as altering manganese ore transportation methods and reducing shipments.

Arsenic plays a pivotal role in the chemical industry, serving as a critical component in various applications. Its unique properties make it indispensable for certain processes, yet its volatile pricing can significantly impact industry dynamics.

[SMM Commentary: Market Activity Remains Low, Stalemate Between Upstream and Downstream Continues, Tungsten Enterprises' Long-Term Contract Prices Remain Stable Overall] With Jiangxi Tungsten and Zhangyuan Tungsten also successively releasing their long-term contract prices for the second half of December, it can be observed that the long-term contract prices of many tungsten enterprises in this round are relatively "stable." Among them, the long-term contract prices of Jiangxi Tungsten and a large tungsten enterprise in Fujian remain unchanged from the previous round, while Chongyi Zhangyuan Tungsten has slightly lowered its long-term contract prices. Currently, the situation of tight upstream supply and no significant improvement in downstream demand remains unchanged, causing tungsten prices to "stalemate" amid the ongoing tug-of-war between upstream and downstream.

On the morning of December 20, Baowu Magnesium fluctuated rangebound. As of 9:35 a.m. on the 20th, Baowu Magnesium fell by 0.08%, closing at 11.89 yuan per share. Baowu Magnesium introduced: The magnesium alloy casing electric drive assembly integrates advanced integrated design concepts, cutting-edge manufacturing technologies, and high-quality material selection. The lightweight characteristics of magnesium materials not only help reduce power consumption but also significantly enhance the driving range of EVs. Additionally, magnesium alloys offer advantages in mechanical performance, processing convenience, and electromagnetic shielding capabilities.

[Xingyuan Zhuomei: Current Overseas Customers Are Mainly Distributed in North America, Germany, Poland, and Hungary] On December 19, Xingyuan Zhuomei's stock price continued the downward trend from the previous trading day. As of 10:38 a.m. on the 19th, Xingyuan Zhuomei fell by 1.6%, trading at 51.15 yuan per share. Xingyuan Zhuomei responded to the barriers in the magnesium alloy industry: Due to the differences in the physical properties of magnesium alloys and aluminum alloys, magnesium dust, debris, and lightweight materials generated during the production process can easily cause fire or explosion accidents when exposed to open flames. Therefore, safe production is fundamental for magnesium alloy die-casting enterprises.

[SMM Commentary: Multiple Companies Continue Production Cuts, Pre-Holiday Restocking Increases, Driving a Long-Awaited Rebound in Sponge Titanium] Due to factors such as continuous production cuts by multiple companies and increased pre-holiday restocking activities, the supply-demand relationship in the sponge titanium market has shifted. The market has now entered a destocking phase, leading to an increase in sponge titanium prices on December 18, after remaining flat for nearly two months. This marks the first price increase since the overall downward trend began on May 14.

According to SMM statistics, as of December 13, the total national social inventory of silicon metal reached 536,000 mt, up 9,000 mt WoW.