China Silicomanganese Alloy Market Movement (2013-4-11)

SHANGHAI, Apr. 11 (SMM) – The silicomanganese alloy market moved weakly today. April procurement prices by steel plants in north China were concentrated between RMB 7,000-7,100/mt (price-to-factory, including tax, by acceptance), while prices in south China were between RMB 6,900-7,050/mt (price-to-factory, including tax, by acceptance), and they will likely continue to push down prices. On the overseas market side, it was reported BHP will likely raise manganese ore prices for June to USD 6/mtu (Mn45-46%), with difficulties faced with alloy producers. SMM sources reported oversupply and low profits at regular silicomanganese alloy producers, but operating rates of high value added products were low. If the market continues to weaken, the silicomanganese alloy industry will be forced to upgrade technology and products, which will largely increase their profits.

According to a CISA report, daily average crude steel output at its member enterprises in late March was 1.68 million mt, up 0.49% from ten days ago. Domestic daily average output is estimated to be 2.07 million mt, slightly lower than the record high of 2.08 million mt expected in the first 10 days of March. Domestic daily average crude steel output in late March fell, but the average output at CISA member enterprises grew by 8,200 mt from mid-March. An analyst believes that is because orders at medium-to-large steel plants were brisk, with relatively high profits. He said: “Orders at medium-to-large steel plants such as Baosteel are optimistic, and their orders in April will also be high, so they are actively producing.”