Silicomanganese Prices Kept Falling, Unlikely to Rebound despite Production Cuts

SHANGHAI, Dec 22 (SMM) – According to Chinese customs, China imported 2,210.82 mt of silicomanganese in November, down 73.54% MoM, and the exports stood at 7,294.16 mt, up 2.31% MoM and 447.69% YoY.

The exports totalled 100,000 mt from January to November, and the imports were 24,000 mt.

The power rationing in major silicomanganese producing areas were recovering, and the power rationing was fully lifted. The output rebounded rapidly as of December. However, the downstream steel mills were still under production restrictions, and the demand was relatively weaker compared with the growing supply. The silicomanganese prices kept falling in November and stabilise around the break-even point in north China.

Many silicomanganese plants in south China suspended the production to contain the costs.

The spot supply remained sufficient despite the extensive production suspension, so the prices were unlikely to rebound.

However, the quotations in north China rebounded significantly on the news of the reconstruction of semi-closed EAFs in Inner Mongolia.

SMM believes that if a lot of plants in north China suspend the production, the prices may rebound slightly after the spots are consumed for a period of time. Otherwise, the prices are likely to drop further.

SMM will continue to track the silicomanganese market trends and the policy impact.