SMM

[SMM Analysis: Stockpiling Demand From Domestic and Overseas Steel Mills, EMM Production Increased Again in December] According to SMM data, China's EMM production in December 2024 was up approximately 2% MoM and over 10% YoY. From January to December 2024, China's total EMM production increased by more than 10% YoY. The main reasons for the production increase in December were: approaching the end of the year, some major EMM plants delivered long-term orders, coupled with stockpiling demand before Christmas overseas, which boosted procurement enthusiasm for EMM. The production increase was significant. In Sichuan, EMM plants faced production pressure, resulting in a slow resumption pace and limited production growth. In Guizhou and Hunan, some EMM plants had maintenance plans, leading to a slight production decrease. Overall, the production increase outweighed the decrease, and total EMM production in December showed an upward trend. Entering January, due to weaker procurement enthusiasm from downstream steel mills before the Chinese New Year, the demand growth for EMM was limited, and EMM plants showed a strong willingness to cut production. Additionally, some EMM plants planned to shut down for maintenance during the Chinese New Year, leading to a reduction in overall EMM supply. Based on the production schedule survey of manganese plants, January's production is expected to decrease MoM on the supply side.