Recently, siliconmanganese market keeps dropping, with few transactions. A lot of manufacturers are not active to produce, and are not optimistic to the aftermarket. Market demand is weak, and steel mills stopped producing to be examined and repaired, so its demand for silicomanganese is reduced, and they complained that life is hard. Current silicomanganese price is already close to the cost, so it’s hard to drop continually. Moreover, manganese ore price is raised in June and July, so silicomanganese price is expected to be stable, while the production situation is still not optimistic. Some manufacturers said that silicomanganese price has already been stable without dropping any more, and sales situation went better.

About cancellation of preferential tariff, it’s expected that silicomanganese manufacturers in the north which mainly use thermal power generation will be impacted significantly, while the manufacturers in the south which mainly use hydroelectricity will not be influenced seriously. Cancellation of preferential tariff will make the cost grow in the north, while the price in the south will drop slightly when the tariff is adjusted to the wet season standard, so the difference of prices from the north to the south will grow.