Chinese Silicon Manganese Price arisen sharply last week !

Why the price sharply increased last week?  We may get the reason from somehow in the below:

1.Manganese ore in Spot Market was sharply increased due to no big volume avaliable for sale, especially for High grade of  Mn Ore from Australia, and even high iron grade of Mn ore from Africa was also increased. The reason of shortage in  Spot market  is that some traders of Mn ore hold the cargo in hand and won't sell and in that case, other Mn onwers follewed and consumers of  Mn ore could not find  Mn ore from warehouse in Port. Price of Spot market offered RMB50-55/dmtu  for high grade, and 40-45RBM for Low grade, that was almost double increased than 2 weeks ago. some insiders said that they already bout RMB46/dmtu before Price up ,now he already got profit if sold at current market level.

2.Manganese SIlicon plants located in Hua De county,where it is 300-340 km far away from Beijing, stopped or all stopped when environmental checking 2 weeks ago, whatever plants have environmental facility or not, in that case, SiMn Alloy supply became very hard and shortage , Steel mills sent their procument people stayed at ferroalloys plant to take cargo and pay by cash.That situation was happened in 2008 and that  reason was that SiMn price also changed alot , and market price now is RMB7200-7500/mt exwork against cash payment. that was 40% increased than the price of RMB5000/mt last Bid for July supply by main steel consumers.

3. Steel plants Bid price in August: Hisco still not confirmed the purchase price for August, but insiders said, below RBM7500/mt delivery to plant, none can fulfill the contract, so we believe the price will be RBM7500/mt against 90days payment term.

WIll this price treand will last  in Sept ? Due to this Chinese SiMn suddenly changed, we believe more imported SiMn from India and Australia will follow in August, and supply will be enough or balance demand in Sept, price will not go up further from that reason. and Mn ore of low price will come to China in August and even price of Spot market changed, but most Mn ore already sold before delivery and MN ore market also will be balanced in Sept.

• [Editor:admin]