Monday, April 27, 2009

Chinese Ferromanganese Prices "Hit Bottom"

It is reported that despite a surge in China's domestic price of electrolytic manganese price, SiMn and FeMn markets remain weak. SiMn6517 is mainly quoted at CNY 6,600 to 7,000 per tonne and SiMn6014 is offered at CNY 5,500 to 5,900 per tonne. Prices now stands at CNY 6,600 to 6,800 per tonne for high carbon FeMn Mn 65% and 8,000 yuan/ton for medium carbon FeMn Mn75C2.0. Many alloy producers complain about dull sales as price has dived near cost line.

According to one Hunan-based producer, profit remains at some CNY 100 per tonne at the moment. The producer maintains production yet is worried about future market owing to stagnant sales and low purchase prices.

Many steelmakers offer purchase prices at no more than CNY 6,700 per tonne for high carbon FeMn Mn65%. FerMn market is unlikely to revive in a short term.

One SiMn producer in Guangxi has quoted SiMn6517 at CNY 6,600 per tonne, a level near to production cost. The producer is also pessimistic about the future market since demand is unlikely to rebound.

Market analysts believe that prices for SiMn and FeMn have dropped to the bottom and hence will not fall dramatically in coming days on any buoyancy in production costs.

Source: Steel Guru

No comments: