China's domestic common alloys market still maintained its overall weak performance throughout the past week. In the context of the slack commercial activity in the manganese alloys market, some medium- and small-sized producers had to halt their operations due to the losses suffered from the relatively high levels of manganese ore prices. Meanwhile, the domestic ferrosilicon market has seen a continuous decline in recent days, with most players standing aside from market trading.
Product name | Specification | Place of origin | Price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
Silicon manganese | FeMn65Si17 | Guangxi | 7,450 | -50 | 1,091 | -7 |
Ferrosilicon | FeSi75 | Gansu | 5,500 | -100 | 806 | -15 |
Over the past week China's domestic manganese alloys market has become relatively stable on a weak trend, with a certain decline observed in some regions. At present, market quotations of silicon manganese FeMn65Si17 are in the range of RMB 7,200-7,800/mt ($1,056-1,142/mt) in the southern regions, though some producers have lowered their quotations to RMB 7,100/mt ($1,041/mt) - marking an overall average decrease of RMB 1,000/mt ($147/mt) week on week. Meanwhile, mainstream prices of high carbon ferromanganese FeMn65 in the south have declined RMB 50/mt ($7/mt) to RMB 7,200-7,300/mt ($1,054-1,083/mt), and FeMn65Si17 is now offered at $1,300/mt FOB for the export market.
The Chinese manganese alloys market posted a general stability in the past week, with manganese ore prices still standing at relatively high levels. Currently, market quotations of Australian manganese ore (44 percent lump) at Qinzhou port have remained constant at the level of RMB 54/mtu ($9/mtu). Since most traders seem unwilling to lower their quotations, manganese ore prices are unlikely to slide down in the short term. On the other hand, domestic manganese alloy producers have been facing difficulties in their operations due to the relatively high manganese ore prices. It is heard that some small-scale producers have suffered losses and thus have had to halt their production. Looking at the current situation, it seems impossible for manganese alloy prices to register any big change before the National Day holidays (October 1-8). As regards the future, if the finished steel market in China fails to recover, then the domestic manganese alloys market may decline further.
With regard to ferrosilicon, the Chinese domestic market has continued to see sluggish trading activity throughout the past week. The ex-factory prices of ferrosilicon (75 percent) in the northwestern regions are down RMB 100/mt ($15/mt) to the range of RMB 5,400-5,500/mt ($792-806/mt), while domestic ferrosilicon is offered at around $1,180/mt FOB for the export market.
Given the bearish performance in the domestic finished steel market, the ferrosilicon market in China has retained its minor decrease trend over the past week, though market prices are unlikely to drop further according to most players. Market trading still looks sluggish as most buyers are inactive in making purchases and prefer to adopt a wait-and-see stance. At market levels of RMB 5,400/mt ($792/mt) for ferrosilicon (75 percent), Chinese producers are still able to make a profit; however, if market prices slide further down, most producers will have to halt their production. In addition, the export market for Chinese ferrosilicon has also become weak under the impact of the soft domestic market, with ferrosilicon at Tianjin ports offered at around $1,180/mt FOB; however, there are few takers. Overall, the Chinese ferrosilicon market is unlikely to see any big change in the short term and is expected to maintain a general stability before the National Day.