SHANGHAI, Mar. 6 (SMM) – Steel prices in 28 major domestic cities dropped. Rebar prices (20mm) were down RMB 1/mt from the previous day, to RMB 3,916/mt. Price of steel plate (20mm) was down RMB 11/mt, to RMB 4,036/mt. Besides, some steel plants that had hiked March ex-works prices began to lower prices again.

The steel market had improved at a time after the Chinese New Year holiday, so some steel plants raised ex-works prices for major products for March. Besides, the China Federation of Logistics & Purchasing (CFLP) announced February PMI was 58.9%, a record high for the year. But severe overcapacity and high inventories show the industry is still in difficulties. According to the ten-day report of the CISA, domestic daily crude steel output in mid-February was at a near-month high of 2 million mt. Meanwhile, steel inventories at its member enterprises grew to 12.93 million mt, up 33.4% from early in the year, and the highest since August 2012. Domestic steel inventories hit a new high in February. By March 1st, trading inventories of the five major steel products grown for the 11th consecutive week to 21.751 million mt, up 1.367 million mt from the previous week, and up 2.932 million mt YoY.

The silicomanganese alloy market fluctuated weakly as the steel market remained sluggish. The market lacked confidence as spot SiMn 65/17 prices dropped along with procurement prices by steel plants, with traders taking a wait-and-see attitude. Meanwhile, quotes for manganese ore continued to rise. According to SM sources, GECC quoted lump (mn44-45%Fe<5%P) for China at USD 5.7/mtu in April, and granule (mn43%Fe<5%P) at USD 5.3/mtu, both up USD 0.4/mtu. But goods overseas might be unpopular due to sluggish silicomanganese alloy market.

Mainstream quotes for silicomanganese alloy today: