The offered prices of silicomanganese started picking up end October to cover the raised power prices upon expiry of the special offers applied to southern provinces, when Hebei Steel, the largest steel mill in China accepted a small rise in price for November deliveries, since then the prices in the market have been crawling up until today, November 22. Hebei presented CNY 7,100 per tonne (delivered, tax paid and payment with usance), up CNY 200 per tonne from the preceding month. Reflecting the mill's reaction, market seems to have turned around.
Contracted price changes of 65 to 17 (Mn: 65%, Si: 17%) of Hunan origin products, on ex works/tax prepaid basis, were
CNY 6,500 - 6,600 per tonne on October 26
CNY 6,550 - 6,650 per tonne on November 12
CNY 6,650 - 6,750 per tonne on November 20
Market became aware of the tightness in spot supplies first in the south mid November and the tightness has spread over to the north-west by now.
According to a local report in China, the purchasing prices of other steel mills in Hebei province are mostly at about CNY 7,200 per tonne as of November 20, with some contracts at CNY 7,300 per tonne for Mn: 65%, Si: 17% on ex-works/tax-prepaid basis with usance.
