TELF AG Sum-up of the Chinese SiMn Market – August 25, 2023

Chinese SiMn Market Shows Strength Amid Optimism

In recent developments, the Chinese SiMn market has displayed significant strength, buoyed by higher transaction prices and an increased sense of optimism within the industry. This upturn in sentiment follows the announcements from major mills regarding upcoming tender price increases. Notably, Hesteel Group, a key player in the market, has taken a decisive step by settling its August tender price at levels surpassing both its initial bid and the tender price set in July. This move has garnered attention and set a positive tone for the sector, as confirmed by local market sources.

A noteworthy trend has emerged in SiMn futures prices, with a steady upward trajectory observed since the second week of July. This rise is in alignment with the broader gains witnessed in ferrous commodity futures prices. The market sentiment, underscored by the optimistic signals stemming from the recent Political Bureau meeting on economic work, has contributed to the overall positive trend. This meeting’s outcomes have instilled confidence among industry players and stakeholders, further reinforcing the positive outlook for the SiMn market.

However, the domestic spot prices for Indian SiMn 60% Mn and HC FeMn 70% paint a slightly different picture. These prices have experienced a decline due to subdued demand and a rather weak market outlook. It’s notable that the production of Indian Mn alloys has indeed declined, reflecting certain challenges within the production landscape. Despite this dip in production, the supply of Mn alloys continues to outpace the current demand, leading to the observed pressure on spot prices.

In conclusion, the Chinese SiMn market is currently showcasing resilience and strength, fueled by the upward momentum in transaction prices and an air of optimism. Major players like Hesteel Group setting higher tender prices have contributed to this positive environment. The surge in SiMn futures prices, driven by favorable market sentiment, is a testament to the industry’s positive trajectory. However, the domestic spot prices for Indian Mn alloys have faced challenges due to weak demand and production declines. As the market continues to navigate these dynamics, keeping an eye on evolving trends will be crucial for all stakeholders involved.