Over the past week China's common alloys market has continued to be characterized by sluggishness. Due to the poor demand for manganese and silicon alloys caused by the weakness of the steel markets, prices in the domestic common alloys market have maintained their declining trend. Currently, most manganese and silicon alloy producers in China are operating at a loss.
Product name | Specification | Place of origin | Price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
Silicon manganese | FeMn65Si17 | Guangxi | 7,650 | -50 | 1,128 | -7 |
Ferrosilicon | FeSi75 | Gansu | 6,400 | -100 | 944 | -15 |
In the past week, market quotations of FeMn65Si17 are at RMB 7,700-8,000/mt ($1,136-1,180/mt) in the north of China, with the lower end down RMB 100/mt ($15/mt) week on week, and are at RMB 7,500-7,700/mt ($1,106-1,136/mt) in the south of the country, with the upper end down RMB 100/mt ($15/mt) week on week. At the same time, the mainstream price of FeMn65 stands at RMB 7,500-7,600/mt ($1,106-1,121/mt), with the upper end down RMB 100/mt ($15/mt) week on week. Meanwhile, export offers of FeMn65Si17 have been standing at $1,450/mt FOB, unchanged week on week.
Given the sluggishness in the steel market, demand for manganese alloys has been very weak. Due to the difficulties in selling their materials, the manganese alloy producers have been facing increased inventories these days. Since the steel market is unlikely to turn around in the near future, it is thought that demand for manganese alloys may continue to shrink in the coming period.
With manganese alloy producers these days selling their materials at low prices, they are incurring losses and hold a pessimistic view of the prospects of the market.
In the domestic ferrosilicon market, quotations have declined by a small margin. Current ex-works prices of ferrosilicon (75 percent) in the northwestern region stand at RMB 6,400/mt ($944/mt), down RMB 100/mt ($15/mt) week on week, while export offers of ferrosilicon (75 percent) have remained at $1,350/mt FOB.
Over the past week China's ferrosilicon market has been characterized by sluggishness, with few deals concluded. Looking at the current situation, the ferrosilicon producers have been struggling in the middle between decreasing transaction prices and increased electricity charges. Since electricity charges have reached over RMB 0.4 per kWh in some regions including Gansu and Inner Mongolia, the cost from electricity charges alone is RMB 4,000/mt ($590/mt), which will force most ferrosilicon producers to implement production stoppages. Meanwhile, business in the market is so weak that even lower prices cannot attract buyers.