SMM

【SMM Analysis：More EMM Plants Resume Production, EMM Output Increased in July】According to SMM data, in July 2024, China's EMM production was 100,100 mt, up 0.56% MoM and up 70.77% YoY. From January to July 2024, China's total EMM production was approximately 584,000 mt, up 14.35% YoY. The main reasons for the increase in July production were: although some EMM plants slightly reduced production due to weak downstream demand, most large EMM plants maintained 70% of their capacity. Additionally, some EMM plants in Hunan that had previously halted production have resumed operations. Overall, the increase in EMM production outweighed the decrease, resulting in a slight increase in total EMM production in July. In August, downstream steel mills are in the off-season, showing weak enthusiasm for EMM procurement. Some EMM plants have already shut down for maintenance. Additionally, some EMM plants are undergoing rectification of their own mines, leading to a tight supply of manganese carbonate ore, and EMM plants are willing to reduce production, resulting in an overall decrease in EMM supply. According to the production schedule survey of manganese plants, the supply side is expected to produce approximately 99,400 mt in August.