SHANGHAI, Nov 18 (SMM) – Ulanqab Ferro Alloy Industry recently issued a notice, calling for production reductions of manufacturers in west Inner Mongolia amid market oversupply.
As far as SMM understands, the spot supply of silicomanganese has been picking up recently amid loosening power rationing among major manganese alloy producing areas. However, the downstream steel mills are still restricted by production reduction or suspension, leading to a sluggish demand market, especially in north China.
If the production is reduced by 15-20% as planned, the near-term market prices will be minimally influenced in the short term. Nonetheless, as the supply and demand pattern improves, the prices may correct down slightly, which depends on the market trend and relative policies.