Manganese based ferroalloys prices touch rock bottom

It is reported that though electrolytic manganese price surges in domestic market recently, SiMn and FeMn markets remain weak. SiMn6517 is mainly quoted at CNY 6,600 per tonne to CNY 7,000 per tonne and SiMn6014 is offered at CNY 5,500 per tonne to CNY 5,900 per tonne. Prices now stands at CNY 6,600 per tonne to CNY 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 a Hunan-based producer, profit only stays 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.

A SiMn producer in Guangxi also reveals that SiMn6517 is now quoted at CNY 6,600 per tonne a level near production cost. The producer is also pessimistic about future market since demand will hardly rebound.

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