China’s common alloys market still declines

China's common alloys market has continued to slide down in the past week, as domestic steel mills have in general lowered their January purchase prices. Supplies in China's ferrosilicon market have increased as ferrosilicon enterprises resume their production, thus exerting a negative impact on domestic ferrosilicon prices. On the other hand, in China's manganese market, many domestic manganese alloy producers have been forced to suspend production due to the strong losses they have been incurring.

In the past week, market prices of manganese alloys in China have continued to decline. Currently, Chinese domestic market quotations of FeMn65Si17 are at RMB 8,100-8,200/mt ($1,224-1,232/mt), with quotations in southwestern China standing at RMB 7,800-8,000/mt ($1,178-1,208/mt), down another RMB 100/mt ($15/mt) week on week. At the same time, the mainstream price of FeMn65 stands at around RMB 7,800-7,900/mt ($1,178-1,193/mt), down RMB 100-200/mt ($15-30/mt) week on week. Meanwhile, export offers of FeMn65Si17 are at $1,450/mt FOB, almost unchanged week on week.

In China's manganese alloy market, domestic steel mills have successively announced their January purchase prices for silicon manganese, with purchase prices of steel mills at RMB 8,000/mt ($1,208/mt) in southern China on average and at RMB 8,200/mt ($1,232mt) in northern China, both lower than the mainstream market offers. Looking at the current situation, the manganese alloy market may continue to slide down and also be faced with supply shortages in the coming period as many domestic manganese alloy producers have been forced to cut production due to the losses they have been incurring.

During the past week, Chinese ferrosilicon prices have continued to slide down. Current ex-works prices of ferrosilicon (75 percent) in China stand at RMB 7,200/mt ($1,088/mt), down another RMB 100/mt ($15/mt) week on week. In addition, export offers of ferrosilicon (75 percent) from China have remained at $1,550/mt FOB, with the transaction volume on the weak side.

In the past week, some domestic steel mills have announced their purchase prices for ferrosilicon, with purchase prices of ferrosilicon (75 percent) from steel mills in northern China at RMB 7,300-7,400/mt ($1,103-1,118) on average, down RMB 1,000/mt ($151/mt) compared to the mainstream offers in the last month. Looking at the current situation, the market players are not optimistic on the prospects for the domestic ferrosilicon market, due to oversupply of ferrosilicon resulting from resumption of production by domestic ferrosilicon enterprises.