SHANGHAI, Apr. 25 (SMM) – Domestic silicomanganese alloy market stood steady. According to SMM sources, silicomanganese alloy producers are pessimistic, but expect bidding prices by steel plants will stabilize since market prices have been close to their cost lines. Should steel plants push down procurement prices further, operating rates at alloy producers will fall sharply. SMM believes bidding prices for silicomanganese alloy by steel plants will not be released until after the Labor Day holiday since south China has yet to implement high-water electricity price.
On the steel market side, the market was sluggish despite the traditional high demand period for steel, while major economic data also reflected that the path to growth is still complicated. Steel plants are faced with high ore prices and low prices for finished products. But traders are not suffering from significant losses in March and April as major steel plants gave them subsidies, with some even have profits. But given high output, steel plants have to implement more preferential policies to deplete inventories. Demand for steel grows more slowly than steel output, but the continuously falling market is expected to rally. Besides, steel market will likely stabilize before the Labor Day holiday, and boosts from the urbanization policy are also expected.