【SMM Analysis：Downstream demand is weak, what is the price outlook for SiMn alloy?】

Published: Jul 26, 2024 18:31

Source: SMM

Save

【SMM Analysis：Downstream demand is weak, what is the price outlook for SiMn alloy?】In June 2024, the average cash price of SiMn alloy 6517 in the north China market was 8,042.11 yuan/mt, up 0.28% MoM; in the south China market, the average cash price was 8,142.11 yuan/mt, up 0.43% MoM. Entering July, most SiMn alloy producers have exhausted their low-price manganese ore inventory and need to purchase high-price manganese ore externally, leading to increased production costs and narrowed profit margins, even resulting in losses. Additionally, July marks the off-season for downstream steel mills, with current steel procurement volumes lower than in June. Due to the dual impact of reduced profit margins and the off-season for downstream steel mills, some SiMn alloy plants in both north and south China plan to reduce or halt production. For SiMn alloy prices in July, the majority of the market holds a bearish view. Most industry participants expect a bearish price outlook, mainly due to the impact of high temperatures in July, which is expected to increase the number of blast furnace shutdowns for maintenance in steel mills. The off-season for steel mills leads to weaker purchasing enthusiasm for SiMn alloy, and the price trend for SiMn alloy is likely to be weak.

In June 2024, the average cash price of SiMn alloy 6517 in the north China market was 8,042.11 yuan/mt, up 0.28% MoM; in the south China market, the average cash price was 8,142.11 yuan/mt, up 0.43% MoM.

Entering July, most SiMn alloy producers have exhausted their low-price manganese ore inventory and need to purchase high-price manganese ore externally, leading to increased production costs and narrowed profit margins, even resulting in losses. Additionally, July marks the off-season for downstream steel mills, with current steel procurement volumes lower than in June. Due to the dual impact of reduced profit margins and the off-season for downstream steel mills, some SiMn alloy plants in both north and south China plan to reduce or halt production.

For SiMn alloy prices in July, the majority of the market holds a bearish view. Most industry participants expect a bearish price outlook, mainly due to the impact of high temperatures in July, which is expected to increase the number of blast furnace shutdowns for maintenance in steel mills. The off-season for steel mills leads to weaker purchasing enthusiasm for SiMn alloy, and the price trend for SiMn alloy is likely to be weak.

Market review

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

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

Related News

13 hours ago

A mine in Henan opened bids for a 300 mt tungsten concentrate auction on February 6.

[Tungsten Concentrate Tender Information] SMM February 7: A mine in Henan conducted an online tender on February 6 to sell 300 metric tons of low-grade tungsten concentrate. Lot A had an average WO3 grade of ≥25%, while Lots B and C had an average WO3 grade of ≥22%. The tender results for each lot are as follows: Lot A: 100 metric tons, tender price of 10,155 yuan/mtu. Lot B: 100 metric tons, tender price of 10,160 yuan/mtu. Lot C: 100 metric tons, tender price of 10,155 yuan/mtu.

13 hours ago

Ganzhou Tungsten Association Significantly Raises Tungsten Price Forecast for February 2026

[Ganzhou Tungsten Industry Association's February Tungsten Price Forecast] The Ganzhou Tungsten Industry Association's forecast prices for the tungsten market in February 2026 are as follows: 55% black tungsten concentrate at 670,000 yuan per metric ton unit, up 210,000 yuan per metric ton unit MoM from the January price, an increase of 45.65%; ammonium paratungstate at 970,000 yuan/mt, up 300,000 yuan/mt MoM, an increase of 44.78%; medium-grain tungsten powder at 1,630 yuan/kg, up 480 yuan/kg MoM, an increase of 41.74%.

13 hours ago

Tungsten Market Rallies Strongly, Long-Term Contract Prices Surge & Domestic-Overseas Markets Link Up

Driven by tight spot raw material supply, a sharp hike in corporate long-term contract prices and festive effects, the tungsten market saw price rises on shrinking volumes this week with domestic and overseas markets moving up in tandem; the strong short-term trend is set to continue, and attention should be paid to the resumption of cemented carbide production, scrap tungsten supply and downstream demand release after the Spring Festival.

13 hours ago