Manganese Alloys and Ore Industry Annual Report 2018
2019-03-01 18:03:18 【Print】
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Introduction
In 2018, the price of manganese alloy in the Chinese market was generally at a high level. At the beginning of the year, "2+26" cities such as Hebei and Shanxi reduced production in the heating season, and the demand for silicomanganese showed a significant decline. Transaction prices of silicomanganese dropped from RMB8,600-8,800/t (USD1,286-1,316/t) EXW D/P in early January to RMB7,800-8,000/t (USD1,166-1,196/t) EXW D/P in late March, down by RMB800/t (USD119/t). From Q2, the production restriction upon steel mills was overs, and rebar prices greatly increased. Steel mills were at full capacity, so the demand for silicomanganese recovered, and the transaction price bottomed out. In the third quarter, rebar prices continued to rise, and demand for silicomanganese increased. Under this strong demand, the price of silicomanganese further moved up. Transaction prices of silicomanganese before the fourth quarter rose to RMB8,500-8,700/t (USD1,271-1,301/t), up by nearly RMB700/t (USD104/t) from Q2. At the beginning of the fourth quarter, the demand for silicomanganese declined slightly, and prices began to fall. However, under the support of high costs, the decreasing range of silicomanganese prices was not large, only a small decline.
Manganese ore prices in China showed significant fluctuation in 2018. Early this year, owing to the increase of silicomanganese prices, transaction prices of manganese ore at ports greatly increased. But from Q2, more low-grade and low-price manganese ore from Malaysia and other countries were delivered to ports. Consumers also increased the purchase volume of low-grade manganese ore to control production costs of silicomanganese, and mainstream manganese ore prices went down. From H2, the profit of silicomanganese in North China was always over RMB1,000/t (USD149/t). The output of silicomanganese increased, and the new capacity of silicomanganese also gradually released, so the demand for manganese ore further increased.
In 2018, the price of manganese alloy in the Chinese market was generally at a high level. At the beginning of the year, "2+26" cities such as Hebei and Shanxi reduced production in the heating season, and the demand for silicomanganese showed a significant decline. Transaction prices of silicomanganese dropped from RMB8,600-8,800/t (USD1,286-1,316/t) EXW D/P in early January to RMB7,800-8,000/t (USD1,166-1,196/t) EXW D/P in late March, down by RMB800/t (USD119/t). From Q2, the production restriction upon steel mills was overs, and rebar prices greatly increased. Steel mills were at full capacity, so the demand for silicomanganese recovered, and the transaction price bottomed out. In the third quarter, rebar prices continued to rise, and demand for silicomanganese increased. Under this strong demand, the price of silicomanganese further moved up. Transaction prices of silicomanganese before the fourth quarter rose to RMB8,500-8,700/t (USD1,271-1,301/t), up by nearly RMB700/t (USD104/t) from Q2. At the beginning of the fourth quarter, the demand for silicomanganese declined slightly, and prices began to fall. However, under the support of high costs, the decreasing range of silicomanganese prices was not large, only a small decline.
Manganese ore prices in China showed significant fluctuation in 2018. Early this year, owing to the increase of silicomanganese prices, transaction prices of manganese ore at ports greatly increased. But from Q2, more low-grade and low-price manganese ore from Malaysia and other countries were delivered to ports. Consumers also increased the purchase volume of low-grade manganese ore to control production costs of silicomanganese, and mainstream manganese ore prices went down. From H2, the profit of silicomanganese in North China was always over RMB1,000/t (USD149/t). The output of silicomanganese increased, and the new capacity of silicomanganese also gradually released, so the demand for manganese ore further increased.
