China's Silicon Manganese Market to Rally From Bottom
China's silicon manganese market has been on the rise from the bottom. China's asking price of the manganese for export declined to less than 800 dollars (CIF) in June from 1,400 dollars, the peak, in February. However, it is currently rallying to 900 dollars. While the market keeps around 1,500 dollars in the West, the Chinese market's adjustment is coming to an end. Chinese producers of silicon manganese are beginning to resist the low prices. In the process of Japanese customers' buying for real in future, there is a possibility that the market will rise further.

According to Japanese makers, trading firms, and customers, after the dry season in March, water-power generation recovered: thus, the Chinese makers' operations were better. On the other hand, thanks to the Chinese Government's tightening the money market, the demand of steel became dull, according to them.

While power rates, freight, coke and ore prices, etc. rise, Chinese ferroalloy makers' costs are rising. According to the Japanese industry, the profitable line of business is over 900 dollars per tonne (CIF).

While China's supply of silicon manganese stopped in January-March, Japanese electric furnace steel makers procured their needed amount of the manganese for April-June from the Ukraine and Kazakhstan, etc. with emergency.
In the domestic market, ferroalloy makers performed the price hike of high-carbon ferromanganese by 40,000 yen and that of silicon manganese by 50,000-60,000 yen in April-June. Furthermore, they are going to perform that of the ferromanganese by 25,000 yen in July-September.