Silicomanganese Exports in December Dropped by 9.33% MoM

SHANGHAI, Jan 26 (SMM) - According to the latest release of the General Administration of Customs and SMM statistics, in December 2021, the ferro-silico-manganese exports stood at 6613.32 mt, a 9.33% decrease month-on-month, an increase of 20.02% year-on-year; the imports stood at 0.4 mt, a 99.98% decrease MoM. According to SMM statistics, from January to December, ferro-silico-manganese exports amounted to 107,000 mt and the imports amounted to 24,000 mt.

According to SMM, domestic silicomanganese output remained high in December, but terminal demand was sluggish. Throughout December, the overall market shipment was poor and the spot prices continued to move down to the break even point. As such, most of the industry participants chose to trade the futures or hold off the shipment. With the easing of terminal demand in mid-December, the market saw a pivot and the spot prices began to pick up slightly, improving the inquiries and shipments.

SMM believes that, in the short term, the environmental protection is still the key in light of the upcoming Beijing Winter Olympics. And as the demand will remain contained for the moment, the prices of silicomanganese are more likely to maintain at a level that allows thin profits.

SMM believes that, in the short term, the end demand is still the key. When the demand is completely released, silicomanganese prices are expected to improve. But in Q1, 2022, silicomanganese prices will largely be stable. The market shall watch how the policies will guide the market.