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[Ferro-alloys.com] China’s ferromanganese market presented a poor performance after National Holiday and its price kept falling. At present, the mainstream price of high carbon ferromanganese 65# is RMB 3,800 - 4,100/mt and the price of medium carbon ferromanganese 75#(C2.0) is RMB 6,700 – 6,800/mt; the price of medium carbon ferromanganese 78#(C2.0) is RMB 6,900 - 7,100/mt; the price of medium carbon ferromanganese 78#(C1.5) is RMB 7,200 - 7,400/mt; the price of low carbon ferromanganese 80#(C0.7) is RMB 8,200 – 8,300/mt.

Up to now, China’s large steel mills have basically finished their bidding in October. And the general purchase price of ferromanganese dropped by RMB 200 - 300/mt, m-o-m. Shougang offered its price of ferromanganese 65# at RMB 3,900/mt(tax included, by acceptance), dropping by RMB 250/mt, m-o-m; medium ferromanganese 78#(C2.0) at RMB 6,850/mt(tax included, by acceptance), falling by RMB 300/mt, m-o-m. Bengang offered its price of high carbon ferromanganese 65# at RMB 3,750/mt(tax included, by acceptance), declining by RMB 250/mt, m-o-m; medium carbon ferromanganese 78# (C2.0) at RMB 6,330/mt(tax included, by acceptance), decreasing by RMB 400/mt, m-o-m; Wuhan Steel offered its price of high carbon ferromanganese at RMB 4,650/mt, dropping by RMB 300/mt, m-o-m; medium carbon ferromanganese at RMB 6,350/mt, descending by RMB 390/mt, m-o-m; Shandong Steel offered its price of high carbon ferromanganese 65# at RMB 3,900/mt, decreasing by RMB 250/mt, m-o-m. Nanjing Steel offered its price of high carbon ferromanganese at RMB 3,890/mt. Magang offered its price of high carbon ferromanganese at RMB 4,240/mt, dropping by RMB 300/mt, m-o-m. Xiangtan Steel offered its price of high carbon ferromanganese at RMB 4,300/mt descending by RMB 300/mt, m-o-m; medium carbon ferromanganese at RMB 6,400/mt. Shanxi Taigang has also released its price of ferromanganese: the price of high carbon ferromanganese is RMB 4,000/mt, dropping by RMB 150/mt, m-o-m, purchased 1,000 tons; medium carbon ferromanganese at RMB 6,950/mt, dropping by RMB 150/mt, m-o-m, purchased 1,000 tons.

In general, the major reason for the decreasing ferromanganese price lies in the high production capacity in North China. Some enterprises in Shanxi, Inner Mongolia and Ningxia have large furnaces and these producers have low production cost; the competition was cut-throating and fierce: albeit many small and medium sized enterprises have been shut down, the large enterprises alone can meet the basic requirement of the northern steel mills, even that of those steel plants in East China and South China. In short, the excessive supply is the main reason for the declining ferromanganese price.

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• [Editor:Chen Lian Hai]