China: Silico Manganese Producers Firm on Prices

In today's market of Silico Manganese, the expectation for upswing is still passionate. HBIS Group announced the purchase amount of Silico Manganese in June: 31,990MT, an increase of 2,500 MT compared with May 2019 and up 7,420 MT compared with 24,570 MT of June 2018.

To be specific, Xuanhua Steel tendered amount 8,000 (+1,400), Chengde steel 7,800 (+1,200), Tangshan steel 5,000 (+700), Shijiazhuang steel 360 (-), Handan Steel 4,000 (-500), Wuyang steel 2,500 (-500), Tangshan medium plate 4,000 (+500), and Tangshan Stainless Steel 330 (-300). Near the end of the month, the current industry focuses on a new round of steel mill tenders, and the overall wait-and-see atmosphere is relatively strong.

However, according to the sources, most alloy factories have had their orders lined up to mid-term of next month, and the tight supply coupled with the fact of increased tender volume as well as the expectation of demand release in the near future, have consolidated sellers’ willingness to back up prices. The latest statistics show that today's mainstream price of Silico Manganese graded 65-17 is still between RMB7,200-7,250/MT (USD1042.09-1049.33/MT), showing upward median level in offers, with less low costs resources. It seems that a stabilized Silico Manganese market is emerging.

The alloy index price shows that the price of Silico Manganese grade 65-17 run stable, and the price of it in provinces such as Henan, Hebei, Shandong, and Jiangsu is between RMB 7,415-7,631/MT (USD1073.21-1104.47/MT), cash, tax-inclusive and delivered.

Futures market:
Today's silicon-manganese futures contract 1909 has seen active transactions out of stimulating anticipation of mill tenders. Voluminous positions are built and transactions are significantly increased. Overall, positive outlook prevails. Attention needs to be paid to its sustainability.

Manganese ore market:
With the release of various mill tenders, the manganese ore market has also stabilized, without apparent fluctuation. Notwithstanding of positive mill tenders, the high level of stock at the port and inadequate demands from alloy factories have from pessimistic sentiments amongst some traders. The later development hinges on demand dynamics.

Future Outlook:
Put all the factors into consideration, most participants expressed that the possibility of an upswing in the new round of tender price stands high. Meanwhile, some conservative people think that a stable market is already hard-earned.