SHANGHAI, Apr. 17 (SMM) – The silicomanganese alloy market remained sluggish, and traded prices will likely fall further. 1. Electricity prices will be lowered due to the onset of high-water period, which will allow steel plants to push down silicomanganese alloy procurement prices to curb costs. 2. The export market is anemic. 3. Silicomanganese alloy oversupply will force some market players out of the market, so that the market will strengthen.
On the steel market side, domestic steel market dropped on April 15th. The plunging crude steel prices last Friday pushed down domestic base metals futures prices after opening, with copper, rubber and steel prices falling. Besides, lower-than-forecasts China’s GDP further pulled down capital markets. Rebar futures prices slumped in excess of RMB 100/mt, and rubber prices fell by over RMB 5%/mt, with copper and steel prices plunging and the Shanghai Composite Index falling for a 15th straight day. Spot steel prices dipped precipitously after rising slowly. Steel prices are expected to fall further in the foreseeable future.