Weekly Review of Silicon and Manganese Market (5.5 to 5.10): weak Price Stability and lack of confidence

International Labour Day returned, silicon manganese steel move in May is also basically set, for this week's market price trend set a weak and stable main tone, from the market trend and future confidence, are slightly depressed.

The day after the festival, the bidding price of a certain two mainstream steel mills in the south was set, which was far lower than expected by the market. The southern manufacturers were basically in a state of zero profit or inverted operation at this price, and some alloy manufacturers in Guangxi and Chongqing said they did not accept the price. No supply has been carried out this month, while the level of recruitment is still high, and some manufacturers believe that the low price may lead to a shortage of supply this month. However, according to SMM, the overall operating rate of silicon and manganese in the south has not decreased this week, and the situation of delivery and scheduling has not dropped, and at the same time, the production resumption manufacturers still exist in the near future, so the supply capacity of the south has maintained a high level. Although the average price of silicon and manganese in the north is higher than that in the south, the profit in the north market is slightly better than that in the south, mainly because the bidding price of a large section steel plant in Hebei in May is basically in line with the market expectations and is also higher than that in the south. The stability of the silicon and manganese market in the north plays a leading role. The overall stability of the northern market this week, only some manufacturers quoted low prices, the overall market average price fell 50 to 75 yuan / ton.

In terms of cost, as the market price of manganese ore basically comes to the bottom, and manganese miners also hang upside down, there is little room for short-term alloy manufacturers to reduce costs from mining prices, but according to overseas mine quotations to China in June, Compared with May or flat or down, the price of some minerals in the future may have a little room to sink; On the high-water season electricity price, the relevant local manufacturers said that they have not received the relevant notice, some areas have also entered the national grid, this year's high-water season brought electricity price impact may be very limited.

Today's SMM Inner Mongolia Si-mn 6517 average quotation is 7350 yuan / ton (accepted ex-factory price), down 75 yuan / ton from last week.