Silicomanganese smelters decrease output in South China

BEIJING (Asian Metal) 18 Dec 09 – Some smelters in South China have decreased or are going to decrease the output of silicomanganese in December due to the power shortage. It is expected the price of silicomanganese will rise further next month.

A smelter in Guizhou signed orders of 3,000-4,000t of silicomanganese 65/17 at RMB7,900-8,000/t (USD1,157-1,173/t) delivered this month, up by RMB500-700/t (USD73-103/t) from last month. Compared to last month, the smelter decreased 1/3 of its output this month, because of the power brownout policy in the local area.Asian Metal CopyrightBEIJING Asian Metal 18 Dec 09 – Some smelters in South China have decreased or are going to decrease the output of silicomanganese in December due to the power shortage.Asian Metal Copyright

“The high price of manganese ore and the power shortage intensify the pressure on our production cost this month. Due to the high production cost, the price of the silicomanganese will surely increase further in the coming month, and I think the price will reach RMB8,700-8,800/t (USD1,274-1,288/t) delivered,” said the source.

A smelter in Guangxi is just fulfilling contracts of silicomanganese 65/17 at RMB7,900-8,000/t (USD1,157-1,173/t) delivered signed early December, and the price was RMB7,200-7,600/t (USD1,054-1,113/t) delivered in November. The smelter plans to produce 7,000-8,000t of silicomanganese 65/17 this month.Asian Metal Copyright“Because of the high production cost caused by the power shortage, we decide to decrease the output from next week,” said the source.Asian Metal Copyright

“Because of the high production cost caused by the power shortage, we decide to decrease the output from next week,” said the source. “Due to the short supply, silicomanganese price should go up further in the coming month, but the final price will be determined by the demand from steel mills.”