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Weekly Review of Silicon and Manganese Market (5.27 to 5.31): whether there is a Game in the Alloy Plant of Li Steel Plant

iconMay 31, 2019 17:40

This week, the silicon and manganese market ushered in the northern steel move, the alloy manufacturers raised the price ahead of time, the steel mill strongly depressed the price, and the game was fierce, but the total bidding price has shifted to the direction of the alloy plant. Hegang's June silicon and manganese bidding has finally finalized 7600 yuan per ton, which is the same as in May. The scaler was 31990 tons, an increase of 2500 tons over the previous month.

This week, the bidding of Hegang can be described as twists and turns, and the bidding time for a full week is also rare in historical records. When the price of a round of inquiry was released at 7500 yuan per ton, the northern alloy manufacturers almost did not answer, and soon launched a second round of inquiry. However, the price remains unchanged, making the market talk one after another, but the continuous shortage of cash and the continuous rise of scalars this month have made many manufacturers have the capital and strength of the game. Only a very small number of Ningxia manufacturers accepted the second round of inquiry due to the impact of cash flow (the price basically lost money to receive goods in Ningxia), but it was far from enough to meet the tender quantity, so the third round of inquiry was released on the last day of this week. The inquiry price is 7600 yuan / ton, the same as in May, and the cost of importing manganese ore fell by about 3% this month, making many manufacturers happy to accept the latest inquiry price, thus determining 7600 yuan / ton as the final tender price.

On the supply side, in May, the operating rate and output of silicon and manganese in the southern and northern markets declined to varying degrees due to lower prices, and the operating rate in Hunan, Chongqing, Shanxi, and other places dropped significantly, by about 10 percent. The change trend of the operating rate of the major manufacturers in the main producing areas of silicon and manganese in Inner Mongolia, Ningxia and Guangxi is different, but the overall operating rate in the region has little change compared with the previous month. At the same time, it is reported that the northern producing areas may start centralized maintenance of ore heaters in late June, when silicon and manganese production and supply timeliness may be weakened, if the maintenance is solid, do not rule out the risk of short-term imbalance between supply and demand in the silicon and manganese market.

In the short term, the phenomenon of spot shortage of silicon and manganese in the national market will not be greatly improved. With the delivery of documents at the end of the month, the demand for new steel measures has increased, and it is difficult for manufacturers to accumulate a large number of inventories in extreme time. Therefore, the short-term support for silicon and manganese prices is more obvious.

Today SMM Inner Mongolia Si mn 6517 average quotation is 7425 yuan / ton (acceptance ex-factory price), the same as last week, but the low price source is very small.

 

Weekly Review
Silicon and Manganese. Silicon manganese alloy

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