Home / Metal News / China Silicomanganese Output Increased by 12% in October

China Silicomanganese Output Increased by 12% in October

iconNov 9, 2021 17:43
Source:SMM
In October, the total domestic production of silicomanganese increased by 12% month-on-month, and the monthly average market spot price rose by about 29% month-on-month. The price at the beginning of the month was much higher than that at the end of the month.

SHANGHAI, Nov 9 (SMM) - In October, the total domestic output of silicomanganese increased by 12% month-on-month, and the monthly average market spot price rose by about 29% month-on-month. The price at the beginning of the month was much higher than that at the end of the month.

According to SMM survey, domestic silicomanganese output in October totalled 725,500 mt, up 69,700 mt or 12% on the month but 32% lower year on year. From January to October 2021, the total domestic output of silico-manganese stood at 8.989 million mt, a decrease of 3.77% from the same period in 2020.

In October, the power rationing and production restrictions in the main production areas eased, especially in Guangxi, where almost all the producers resumed and reached full operation in the middle of the month. After the increase in electricity tariffs, the power rationing in Inner Mongolia improved, and the output gradually recovered. At present, the overall demand weakened as the production suspension and restrictions at steel mills have not improved. The output of silicomanganese recovers. The prices declined. At the beginning of October, the prices rebounded after hitting a new high. As of the end of October, the prices had dropped from 13,000 yuan/mt to 11,000 yuan/mt, a decrease of 18.2%, and continued the downward trend.

At present, after the increase in electricity tariffs in various places, the supply of electricity has improved, and the production of silicomanganese has gradually increased. According to SMM, the power rationing and production restrictions in the main production areas in November will likely improve again, but the demand from downstream steel mills is not strong. At present, the cost of the alloy plants in south China is about 9,300 yuan/mt, and the cost in the north is around 8,300 yuan/mt. The market price is almost approaching the breakeven point of the alloy plants in south China. And the market is relatively pessimistic, selling at lower prices.

On the whole, the current market demand is weakening. Although there are alloy plants in the south that are expected to suspend production for maintenance amid the price drop, the overall market spot supply is ample. And most steel mills have inventories. Therefore, SMM predicts that the prices of silicomanganese in November will stand at 8,500-9,500 yuan/mt.

silicomanganese

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars

All