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MMi
Slow Resumption Pace, February EMM Production Decreases [SMM Analysis]
Feb 28, 2025, at 8:04 am
[SMM Analysis: Slow Resumption of Work Leads to Decrease in EMM Production in February]
According to SMM data, China's EMM production in February 2025 decreased by over 3% MoM but was up over 8% YoY. The main reasons for the production decrease in February were as follows: safety inspections at mines led to reduced manganese carbonate ore mining at some mines, resulting in a shortage of EMM ore raw materials and slight production cuts at some EMM plants. Additionally, the slow resumption of work at steel mills after the Chinese New Year weakened their enthusiasm for EMM procurement, causing many EMM plants to adopt a wait-and-see approach. Consequently, EMM plants that conducted equipment maintenance before and after the holiday experienced slow progress in resuming operations. Combined with the shorter calendar month of February, the overall supply in the manganese market continued to decline.
In March, the overall operating rate of manganese plants is expected to remain at 70% of capacity. Some EMM plants that had previously halted production plan to resume operations, coupled with the longer calendar month in March, leading to an anticipated increase in overall EMM supply. Based on the production schedule survey of manganese plants, March production is expected to increase MoM on the supply side.
SMM, February 28:
In February 2025, China's EMM production decreased by over 3% MoM but was up over 8% YoY. The main reasons for the production decrease in February were as follows: safety inspections at mines led to reduced manganese carbonate ore mining at some mines, causing a shortage of EMM ore raw materials and resulting in slight production cuts at some EMM plants. Additionally, after the Chinese New Year, steel mills resumed operations slowly, showing weak enthusiasm for EMM procurement. Many EMM plants adopted a wait-and-see approach, leading to slow resumption progress for those undergoing equipment maintenance before and after the holiday. Coupled with the fewer calendar days in February, the overall supply in the manganese market continued to decline.
Entering March, the overall operating rate of manganese plants is expected to remain at 70% of capacity. Some EMM plants that had previously halted production are expected to resume operations, and with the increase in calendar days in March, the overall EMM supply is expected to increase. Based on the production schedule survey of manganese plants, March production is expected to increase MoM on the supply side.