China's silicon-manganese output to fall 13.2% in Nov

SHANGHAI, Nov 15 (SMM) – China's production of silicon-manganese is expected to shrink 13.2% from a month ago to 893,000 mt in November, as excessive supply weighed on prices of the steelmaking raw material and pushed producers into losses, according to an SMM survey.

SMM learned that inventories were high at silicon-manganese mills in major production areas of Guizhou and Ningxia, as margins prompted producers to ramp up output in August-October. 

As of November 15, prices of silicon-manganese #6517 in Guizhou have slipped 1,350 yuan/mt from mid-September to 5,900-6,200 yuan/mt (on acceptance, ex-work), SMM assessments showed. 

Purchasing prices by steel mills also accelerated their decline since the end of August, with some steelmakers cutting prices by over 1,000 yuan/mt in their November tenders. 

SMM expects lower production in November to halt the decline in near-term prices of spot silicon-manganese.