Chinese SiMn offers go up

BEIJING (Asian Metal) 24 Dec 08 – Producers have increased their offers of silicomanganese 65/17 to RMB7,800-8,000/t (USD1,139-1,168/t) ex works this week in view of the tight supply and stronger demand. Therefore, the price is likely to go up to RMB8,000/t (USD1,168/t) delivered to steel mills in the coming days.

A Shandong-based steel mill reported they have received offers for silicomanganese 65/17 at RMB7,800/t (USD1,139/t) ex works this week, up by RMB500/t (USD73/t) from early this month. “The supply is tight now, as most producers who are still running have taken orders for January’s output,” said the source. “The price of silicomanganese 65/17 is likely to go up to RMB8,000-8,500/t (USD1,168-1,241/t) delivered to steel mills in the coming days.”

The steel mill is running with a consumption of 1,000tpm of silicomanganese 65/17.

In the meanwhile, with a trading volume of 2,000tpm of silicomanganese, a dealer in Yunnan confirmed the tight supply. “As I know smelters in Yunnan have booked their outputs at least till Mid-January.Asian Metal Copyright “The supply is tight now, as most producers who are still running have taken orders for January’s output,” said the source.Asian Metal Copyright Although I have received many enquiries from steel mills, I can not supply any material to them,” said the source.

Producers are offering silicomanganese 65/17 at RMB8,000/t (USD1,139-1,168/t) delivered to Kunming, RMB500-700/t (USD73-102/t) higher compared to early this month, and some deals were concluded. However, traders dare not keep any stocks considering the high risk in current market.Asian Metal Copyright A Shandong-based steel mill reported they have received offers for silicomanganese 6517 at RMB7,800t USD1,139t ex works this week, up by RMB500t USD73t from early this month.Asian Metal Copyright

“The price rebound is due to concentrated demand from steel mills before holidays, and the market may move down a little after the Spring Festival,” the source predicted.