Oversupply Prevented SiMn Alloy Prices From Rising In April

SHANGHAI, May 16 (SMM) – The most-traded SiMn alloy futures contract moved around 7,037 yuan/mt in April. Its highest settlement price at CST 10:15 was 7,224 yuan/mt, down 3.83% from March, and its lowest settlement price was 6,870 yuan/mt. The price volatility was relatively large. Due to poor performance of ferrous metals market, SiMn alloy prices lacked upward momentum.

Despite lower manganese ore and coke prices, more SiMn alloy producers in south China cut production due to high power tariffs. The profit margins of producers in north China were modest, but production fell slightly due to power rationing, power grid upgrades and regular maintenance. The SiMn alloy market was still oversupplied amid slack demand, preventing its spot prices from rising.