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Chinese SiMn Market Prices Bottomed Out

Source: Time:2013-09-02 09:23:35 views:

silicon manganese sale has been keeping low level since this year, resulting in serious industry-wide losses. Since there are only 50% manganese alloys factories struggled to maintain operation, huge stocks for imported manganese ore in China was forced to oversea miners have to edge down future price to cope with slowing demand. 
 
Since sale price for silicon manganese has long been lowered than cost, the output will not expand in north even if many factories have incremental productive capacity. On the other hand, a falling price of imported manganese ore and rumored news on possibly downtrend of power price make alloy suppliers tend to produce in terms of orders for fearing of suffering further cut by steelmakers. .Therefore, inventory for silicon manganese keeps low level in China and this situation will last some time.
 
At present, reduced spot resource but increased demand from steel mills aggravates silicon manganese tight supply, resulting in severe shortage supply across the country. It is said that Hebei Iron and Steel Group has difficult in purchase silicon manganese in straight two months. Meanwhile, silicon manganese stocks for some mills in northeast China less than 5 days consuming allow them to accept purchase with above RMB7,250/mt. It is predicted that tight supply for silicon manganese will last the whole September and October to push up price higher.
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