SiMn Alloy Plants Became More Willing to Cut Output amid Steadily Falling Market Prices

SHANGHAI, Jul 25 (SMM) - As of last Friday, the SMM SiMn alloy 65/17 prices stood at 7,300-7,400 yuan/mt in cash in north China, down 375 yuan/mt from a week ago. In the southern market, SMM SiMn alloy 65/17 prices were 7,250-7,400 yuan/mt in cash in Guangxi, down 350 yuan/mt from a week ago, and 7,300-7,400 yuan/mt in Guizhou, down 375 yuan/mt. 
From the perspective of raw materials, the prices of manganese ore and coke declined to varying degrees last week, thus the cost of SiMn alloy fell accordingly. 
From the perspective of downstream demand, demand for SiMn alloy was poor amid output cuts by steel mills and weak end demand. 
There were few transactions in the spot market. Last Friday, the Ferroalloy Association issued a statement that asked its members to reduce output by 60%. Many producers were willing to follow the appeal, but the actual cuts will depend on HBIS Group’s bid prices for August. 
On the whole, the current silicon-manganese market maintains a situation of oversupply. Market quotations are chaotic while most market players are awaiting HBIS Group’s bid prices for August for guidance over future prices.