Over the past week, China's domestic manganese alloy market has indicated a softening trend while trading activity has been on the low side. With manganese alloy prices declining to cost level, some companies are planning to stop production in order to carry out overhauls. Meanwhile, a relatively greater number of deals has been observed in the domestic ferrosilicon market though prices have remained at the same levels as in the previous week. Currently, ferrosilicon market players are still not optimistic as regards the prospects for the market in the coming period.
Product name | Specification | Place of origin | Price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
Silicon manganese | FeMn65Si17 | Guangxi | 8,050 | -50 | 1,180 | -7 |
Ferrosilicon | FeSi75 | Gansu | 6,000 | - | 880 | - |
In the past week, the prices of manganese alloys have maintained their softening trend in China's domestic market. Market quotations of FeMn65Si17 were at RMB 7,800-8,200/mt ($1,144-1,202/mt) in the south of China, marking a decrease of RMB 50/mt ($7/mt) week on week; at the same time, the mainstream price of FeMn65 in the south remained unchanged at RMB 7,900-8,200/mt ($1,158-1,202/mt), while export offers of FeMn65Si17 were at $1,450/mt FOB.
At present, Chinese manganese alloy producers are finding life difficult due to weak market demand and the apparent oversupply situation. Meanwhile, with manganese prices at high levels, manganese alloy producers have been facing great cost pressure.
Currently, silicon manganese alloy prices have been declining to below RMB 8,000/mt ($1,173/mt), which, going by current manganese prices, is already below cost level.
Over the past week the ex-factory price of ferrosilicon (75 percent) was RMB 5,950-6,050/mt ($872-887) in northwestern China, unchanged compared with the previous week. In addition, export quotations of domestic ferrosilicon (75 percent) have been in the range of $1,250-1,280/mt FOB. During the week in question, the ferrosilicon market has observed a slight improvement with more deals concluded in some regions. In general, market quotations have managed to remain stable due to the support of higher raw material costs. As reported by producers in many regions, market demand has been improving as steelmakers have started to increase their ferrosilicon inventories. In addition, the export market is more active than before with greater numbers of inquiries. However, there is currently some confusion over market price levels.