FOCUS: Coronavirus-linked tight cashflow, weak demand push China's SiMn price lower

The Chinese domestic price for silico-manganese has drifted downward significantly in recent assessments because some alloy smelters reduced their offer prices to attract buying interest and generate cash amid the sluggish demand circumstances created by the outbreak of the 2019-nCoV coronavirus, market participants have told Fastmarkets.

Fastmarkets' latest assessment of the price of silico-manganese, 65% Mn min, max 17% Si, in-whs China, was 6,000-6,200 yuan ($854-882) per tonne on Friday February 21.
This was down by 6.2% from 6,400-6,600 yuan per tonne a week earlier, and down by 7.6% from 6,500-6,700 yuan per tonne on February 7, just after Hebei Steel, China's second-largest steel mill, announced a month-on-month rise of 600 yuan per tonne in its purchase price for February-delivery material.
Alloy smelters reduce prices
Many domestic Chinese alloy smelters, especially those that failed to secure long-term contracts with steel mills, have been reported by market sources to be slashing their offer prices to attract buying interest and generate cash.

"Some small to medium-sized alloy smelters do not sign contracts with mills and usually sell their cargoes to traders, because the latter pay them more quickly than...

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