High inventories are expected to disappear

At present, the silicon-manganese market is in a state of booming supply and demand, high cost and low profit, which continues to oscillate in the short term. In the later period, with the further effect of the policy of steady growth, the high inventory of silicon-manganese is expected to disappear, and the price of silicon-manganese may rise in stages.

Since the beginning of this year, driven by the expectation of steady growth, most varieties of the black industry chain have increased greatly, steel up by about 20%, iron ore up by about 40%, coal coke up by more than 50%, while the current price of silicon-manganese is still in a state of low oscillation, spot price from the beginning of 7800 yuan/ton to about 8400 yuan/ton, an increase of only 8%. The reason is that the supply of silicon manganese itself is loose, and high inventory suppresses the price of silicon manganese. Looking forward to the future market, we believe that silicon-manganese demand elasticity is greater than supply, high inventory is expected to disappear, silicon-manganese price may usher in a catch-up market.

In general, the current silicon-manganese market is in a state of booming supply and demand, high cost and inventory, and low profit. The pattern of oscillation will continue in the short term. In the later period, with the effect of stable growth, the elasticity of the demand side will be greater, and the high inventory of silicon-manganese is expected to disappear, and the price of silicon-manganese will face a stage rise.