China Silicomanganese Alloy Market Movement: Steel Prices Meet Resistance Due to Rising Crude Steel Output and Falling Iron Ore Price (2013-1-18)-Shanghai Metals Market

Hot Keywords

  • Inventory data
  • NPI
  • Zinc
  • Macroeconomics
  • Production data
  • Market commentary
  • Morning comments
  • Aluminium
  • Copper
  • Stainless steel
  • Mengtai Group
  • hydrogen stations
  • Nickel
  • Futures movement
  • Iron ore

China Silicomanganese Alloy Market Movement: Steel Prices Meet Resistance Due to Rising Crude Steel Output and Falling Iron Ore Price (2013-1-18)

Price Review & Forecast 07:45:23PM Jan 18, 2013 Source:SMM

SHANGHAI, Jan. 18 (SMM) – SMM believes steel prices will not rise further given sluggish downstream demand and weakening costs support. Besides, demand for silicomanganese alloy is pessimistic before the Chinese New Year as most steel plants have finished stockpiling. Given sufficient supply, silicomanganese alloy prices are expected to remain steady.

According to the CISA, daily crude steel output at major enterprises was 1.6749 million mt in early January, up 3.8% MoM. Based on this, domestic daily average crude steel output in early January is estimated 1.9442 million mt, up 2.3% MoM.

Operating rates at steel plants rose again after dropping for a month and a half due to growing downstream purchasing. Despite the urbanization target boosted demand for steel, overall demand did not change noticeably. Growing output also weighs down steel prices.

Given increasing uncertainty towards demand, spot iron ore prices at ports fell by USD 7.50/mt on Wednesday, the largest decline in 14 months.

SMM sources report Mongolia Tavan Tolgoi reported they had suspended coal export to China on January 11. The company has global largest coking coal mine, and is the largest supplier to China. As a result, coking coal prices are expected to rise, which will pull up coke prices. In this context, costs at silicomanganese alloy producers will increase further, with profits further contracted.

Mainstream quotes for silicomanganese alloy today:
 

Product
Brand
Province
Mainstream Prices Today (RMB/mt)
Mainstream Prices on Jan. 17 (RMB/mt)
Fluctuation
Note
Silicomanganese alloy
6517
Liaoning
6950-7050
6950-7050
Ex-works, including tax
Silicomanganese alloy
Hunan
6700-6800
6700-6800
Ex-works, including tax
Silicomanganese alloy
Henan
6400-6500
6400-6500
Excluding tax,
Trading Market
Silicomanganese alloy
Guangxi
6700-6800
6700-6800
Ex-works, including tax
Silicomanganese alloy
Sichuan
6700-6800
6700-6800
Ex-works, including tax
Silicomanganese alloy
Yunnan
6600-6700
6600-6700
Ex-works, including tax
Silicomanganese alloy
Guizhou
6700-6800
6700-6800
Ex-works, including tax
Silicomanganese alloy
Ningxia
6950-7000
6950-7000
By acceptance, ex-works, including tax
Silicomanganese alloy
Shanxi
6900-6950
6900-6950
Ex-works, including tax
Silicomanganese alloy
Inner Mongolia
6900-6950
6900-6950
Ex-works, including tax
Silicomanganese alloy
6014
Hunan
5950-6000
5900-6000
↑ 25
Ex-works, including tax
Silicomanganese alloy
Guangxi
5850-5950
5800-5900
↑ 50
Ex-works, including tax
Silicomanganese alloy
Guizhou
5850-5900
5800-5900
↑ 25
Ex-works, including tax
Silicomanganese alloy
Hunan
5600-5700
5600-5650
↑ 25
Ex-works, excluding tax
Silicomanganese alloy
Guangxi
5500-5600
5450-5550
↑ 50
Ex-works, excluding tax
Silicomanganese alloy
Guizhou
5500-5550
5450-5550
↑ 25
Ex-works, excluding tax
Silicomanganese alloy
58#
Hunan
5350-5400
5350-5400
Ex-works, excluding tax
Silicomanganese alloy
55#
Hunan
5200-5250
5200-5250
Ex-works, excluding tax
Silicomanganese alloy
50#
Hunan
4850-4900
4850-4900
Ex-works, excluding tax

China Silicomanganese Alloy Market Movement: Steel Prices Meet Resistance Due to Rising Crude Steel Output and Falling Iron Ore Price (2013-1-18)

Price Review & Forecast 07:45:23PM Jan 18, 2013 Source:SMM

SHANGHAI, Jan. 18 (SMM) – SMM believes steel prices will not rise further given sluggish downstream demand and weakening costs support. Besides, demand for silicomanganese alloy is pessimistic before the Chinese New Year as most steel plants have finished stockpiling. Given sufficient supply, silicomanganese alloy prices are expected to remain steady.

According to the CISA, daily crude steel output at major enterprises was 1.6749 million mt in early January, up 3.8% MoM. Based on this, domestic daily average crude steel output in early January is estimated 1.9442 million mt, up 2.3% MoM.

Operating rates at steel plants rose again after dropping for a month and a half due to growing downstream purchasing. Despite the urbanization target boosted demand for steel, overall demand did not change noticeably. Growing output also weighs down steel prices.

Given increasing uncertainty towards demand, spot iron ore prices at ports fell by USD 7.50/mt on Wednesday, the largest decline in 14 months.

SMM sources report Mongolia Tavan Tolgoi reported they had suspended coal export to China on January 11. The company has global largest coking coal mine, and is the largest supplier to China. As a result, coking coal prices are expected to rise, which will pull up coke prices. In this context, costs at silicomanganese alloy producers will increase further, with profits further contracted.

Mainstream quotes for silicomanganese alloy today:
 

Product
Brand
Province
Mainstream Prices Today (RMB/mt)
Mainstream Prices on Jan. 17 (RMB/mt)
Fluctuation
Note
Silicomanganese alloy
6517
Liaoning
6950-7050
6950-7050
Ex-works, including tax
Silicomanganese alloy
Hunan
6700-6800
6700-6800
Ex-works, including tax
Silicomanganese alloy
Henan
6400-6500
6400-6500
Excluding tax,
Trading Market
Silicomanganese alloy
Guangxi
6700-6800
6700-6800
Ex-works, including tax
Silicomanganese alloy
Sichuan
6700-6800
6700-6800
Ex-works, including tax
Silicomanganese alloy
Yunnan
6600-6700
6600-6700
Ex-works, including tax
Silicomanganese alloy
Guizhou
6700-6800
6700-6800
Ex-works, including tax
Silicomanganese alloy
Ningxia
6950-7000
6950-7000
By acceptance, ex-works, including tax
Silicomanganese alloy
Shanxi
6900-6950
6900-6950
Ex-works, including tax
Silicomanganese alloy
Inner Mongolia
6900-6950
6900-6950
Ex-works, including tax
Silicomanganese alloy
6014
Hunan
5950-6000
5900-6000
↑ 25
Ex-works, including tax
Silicomanganese alloy
Guangxi
5850-5950
5800-5900
↑ 50
Ex-works, including tax
Silicomanganese alloy
Guizhou
5850-5900
5800-5900
↑ 25
Ex-works, including tax
Silicomanganese alloy
Hunan
5600-5700
5600-5650
↑ 25
Ex-works, excluding tax
Silicomanganese alloy
Guangxi
5500-5600
5450-5550
↑ 50
Ex-works, excluding tax
Silicomanganese alloy
Guizhou
5500-5550
5450-5550
↑ 25
Ex-works, excluding tax
Silicomanganese alloy
58#
Hunan
5350-5400
5350-5400
Ex-works, excluding tax
Silicomanganese alloy
55#
Hunan
5200-5250
5200-5250
Ex-works, excluding tax
Silicomanganese alloy
50#
Hunan
4850-4900
4850-4900
Ex-works, excluding tax