High demand buoys silicomanganese spot price

SHANGHAI, Aug 10 (SMM) – Silicomanganese alloy prices in the Chinese spot market extended their increase on Friday August 10 given robust downstream demand. 

As of Friday August 10, SMM assessed #6517 silicomanganese alloy in north China at 8,400-8,500 yuan/mt ex-factory in acceptance, up 100 yuan/mt from August 9, and up 200 yuan/mt from a week ago. 

Some offers in the north were heard to be as high as 8,500-8,600 yuan/mt ex-factory in cash on August 10, but saw little trades at such prices.  

Higher prices across ferrous metals improved market sentiment. Consumption of silicomanganese alloy was robust despite environmental cuts at some steel mills, SMM learned. 

Some market participants expect the September tender at major steel mills to stand at 8,600-8,700 yuan/mt ex-factory in acceptance. This compared with an August tender at 8,500 yuan/mt, by a large steel mill in Hebei province at the end of July. 

Prices in acceptance typically stand 100 yuan/mt higher than prices in cash.