China's manganese
alloys market remains weak after steelmakers slashed their raw materials
purchase prices.
Silico Manganese prices stood at 7,050-7,200 yuan per tonne
on Monday August 6 i.e. down by 50 yuan from a week ago.
According to market players, “as the procurement prices have
declined, most of the producers will reduce like to reduce output or shut down
operation in the coming weeks due to marginal profits and slow demand. However,
the reduction of spot material supply will not contribute to improvement of
spot prices.”
A Shanxi-based producer, with an output of 4,000tpm for silicomanganese 65/17,
reports that the market is dim and spot prices have declined to the lowest
level.
“The biding prices have declined to RMB7,250-7,350/t delivered of steel mills
in northern areas and it is too hard for us to supply the material at such low
prices due to the high operation cost caused by the high power charge in local
area,” said another source, “We are suffering losses and it is possible for us
to decline output later, but I think the spot prices will not improve as the
demand has declines also.”
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