[Ferro-Alloys.com] In recent period, Chinese manganese alloy market still kept flat amid slowing growth for demand. Silicon manganese 6517 is currently pricing at RMB5,650-5,800/mt in north and RMN5,900-6,000/mt forsouth, and RMB5,200-5,300/mt for 6014. High carbon ferromanganese 65 is now concentrating on 5,100-5,200/mt in south while RMB5,000-5,100/mt in north. Medium carbon ferromanganese 75C2.0 with low p containing is focusing on RMB8,000-8,100/mt while RMB8,300-8,400/mt for 78C2.0 as well as RMB8,700-8,800/mt for 78C1.5. Low carbon ferromanganese 80C0.7 is traded at around RMB9,300/mt, some as low as RMB9,100-9,200/mt.

In terms of production situation, the operation rates of manganese alloy shrank to only around 20% in south areas for expensive power price but ongoing declining purchase price of steelmills. It is said that Guizhou related department already agreed to give a small discount on power price in order to boost local economy since many companies shut down. However, huge loss made alloy factories impossible to recover production soon given current poor market performance. In north, many large scale alloy companies still struggled to maintain operation, in fact, ample spot supply in north served as main reason to push down sale price.

All in all, excess supply for steel in China would be hard to change in 2015, and the profits of steelmakers would be still not optimistic. Under such situation, alloy companies would be also hard to get out of dilemma in short period. 

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• [Editor:Sophie]