China Silicomanganese Alloy Market Movement: Spot Silicomanganese Alloy Price Drops by RMB 50-100 /Mt (2013-3-4)

SHANGHAI, Mar. 4 (SMM) – Domestic spot steel prices remained weak, with market confidence low. Trading inventories of major domestic steel products have been growing for several weeks, and hit a record high in the recent years. In the second trading week after the Chinese New Year holiday, steel output was high since end-user demand has yet to release, and inventories grew rapidly, and combined with weak steel futures prices, confidence in the spot steel market was depressed. In this context, spot prices of major steel products dropped across the board until last weekend.

Silicomanganese alloy procurement prices by steel plants dropped in March, with the price-to-factory between RMB 7,250-7,300/mt (including tax, by acceptance). The overall silicomanganese alloy market moved weakly, and spot prices dropped in response. Mainstream prices in Inner Mongolia fell from RMB 7,100-7,150/mt, to RMB 7,000-7,050/mt. Mainstream prices in Gansu fell RMB 50/mt, down from RMB 6,950-7,000/mt, to RMB 6,900-6,950/mt. Mainstream prices in Ningxia fell RMB 100/mt, down from RMB 6,950-7,000/mt, to RMB 6,850-6,900/mt. Prices in south China rarely changed.

Mainstream quotes for silicomanganese alloy today: