Chinese spot SiMn price supported by growing buying interest, rising futures prices

China’s spot silico-manganese price rose in the week ended Friday December 6 and has maintained the upward momentum so far this week after some alloy smelters raised their offers amid an increase in futures prices and growing buying interest from mills and traders.

Fastmarkets assessed the price of silico-manganese, 65% Mn min, max 17% Si, in-whs China at 5,700-5,800 yuan ($810-824) per tonne on December 6, narrowing upward by 100 yuan from 5,600-5,800 yuan per tonne a week earlier.
The recent uptick comes despite Hebei Steel, China’s second largest steel mill, announcing a month-on-month cut of 150 yuan per tonne to its silico-manganese tender price for Delivery-delivery. This follows a 1,200-yuan-per-tonne cut to its tender price for November-delivery cargoes.
“Prior to the release of the tender price [from Hebei Steel], many market participants had been taking a watchful stance. Some alloy smelters, who were bearish about the near-term market outlook, lowered offer prices to destock and generate cash in fear of steeper dips in the coming weeks,” a Chinese market participant said.

But Chinese alloy plants are now choosing to either hold off from offering or to...

Published

Amy Lv

December 12, 2019

09:55 GMT

Shanghai