China's silico manganese output rises 4.2% m-o-m in July

Total silicomanganese output among the 121 Chinese smelters under Mysteel's tracking rose for the third successive month in July, with the tonnage up by another 39,702 tonnes or 4.2% on month at 994,350 tonnes, the highest since 2014. The sampled smelters host 94% of China's SiMn smelting capacity.
On a daily basis, SiMn output among the surveyed smelters averaged 32,075 tonnes/day last month, higher by 254 t/d or 0.8% from that for June, according to Mysteel's latest monthly survey.

Although SiMn production in North China's Inner Mongolia and Southwest China's Guangxi slipped in July, the decrease was offset by the rise in other major production bases such as North China's Ningxia and Northwest China's Guizhou and Yunnan, the survey showed.

China's SiMn prices showed some signs of recovery in July, mainly thanks to improved sentiment in the domestic market with the derivative market's better performance and the growth in finished steel prices, Mysteel Global learned.

As of July 31, the national price of 6517 SiMn was assessed by Mysteel at Yuan 6,503/tonne ($904/t) including the 13% VAT, gaining Yuan 39/t compared with the end of June.

On the same day, the most-traded SiMn contract on the Zhengzhou Futures Exchange for October delivery closed the daytime trading session at Yuan 6,758/t, higher by Yuan 210/t from the settlement price on June 30, according to the exchange's data.

Domestic finished steel prices strengthened last month, which also gave Chinese SiMn smelters some confidence to lift their offering prices to improve their profitability, Mysteel Global noted. Some steelmakers raised their procurement prices accordingly.

For example, China's national price of HRB400E 20mm dia rebar, a bellwether of domestic steel-market sentiment, was assessed by Mysteel at Yuan 3,886/t including the 13% VAT as of July 31, higher by Yuan 31/t on month.

Meanwhile, manganese ore prices in China remained weak last month, with the price of South Africa-origin 36.5% grade Mn ore at North China's Tianjin port reaching Yuan 30.8/dmtu including the 13% VAT as of July 31, losing Yuan 0.2/dmtu from one month earlier, according to Mysteel's assessment.

Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.