China Silicomanganese Alloy Market Movement (2013-4-22)

SHANGHAI, Apr. 22 (SMM) – The sluggishness in silicomanganese alloy market remains, with some regions moving goods at low prices. Rumormongers said electricity prices in south China had been adjusted, but SMM sources report China Southern Power Grid and silicomanganese alloy producers were now still implementing electricity prices for the low-water period. Nevertheless, the NDRC and other relevant power departments are expected to adjust electricity prices by the end of the month across China by RMB 0.08-0.1/kwh, which will cut costs by RMB 300-400/mt and cause steel plants to push down silicomanganese alloy bidding price.

On the steel market side, ex-works prices for April were mixed, but policies at Baosteel, Wuhan Iron & Steel and Anshan Iron & Steel were in concert. Baosteel maintained hot rolling, scouring and cold rolling prices unchanged for May, and gave discounts of RMB 100-200/mt for steady agents. Wuhan Iron & Steel lowered all hot rolling product prices by 200/mt, and cut prices for wires, hot rolled plate, scouring steel, cold rolled coil and hot galvanizing by RMB 100-240/mt. Anshan Iron & Steel continued to lower prices for May by RMB 150/mt, RMB 100/mt, and RMB 200/mt, respectively, for hot rolled plate, cold rolled plate and coil and wires.