Latest Update in the SMM Tungsten Market

At the beginning of the week, online DMC prices of enterprises in Shandong were 13,200 yuan/mt, and the bidding prices were 13,000 yuan/mt.

This week, both spot and futures prices of silicon metal showed a downward trend.

In 2024, new silicone capacity in China starts to be released intensively.

【SMM Analysis：Downstream demand is weak, what is the price outlook for SiMn alloy?】In June 2024, the average cash price of SiMn alloy 6517 in the north China market was 8,042.11 yuan/mt, up 0.28% MoM; in the south China market, the average cash price was 8,142.11 yuan/mt, up 0.43% MoM. Entering July, most SiMn alloy producers have exhausted their low-price manganese ore inventory and need to purchase high-price manganese ore externally, leading to increased production costs and narrowed profit margins, even resulting in losses. Additionally, July marks the off-season for downstream steel mills, with current steel procurement volumes lower than in June. Due to the dual impact of reduced profit margins and the off-season for downstream steel mills, some SiMn alloy plants in both north and south China plan to reduce or halt production. For SiMn alloy prices in July, the majority of the market holds a bearish view. Most industry participants expect a bearish price outlook, mainly due to the impact of high temperatures in July, which is expected to increase the number of blast furnace shutdowns for maintenance in steel mills. The off-season for steel mills leads to weaker purchasing enthusiasm for SiMn alloy, and the price trend for SiMn alloy is likely to be weak.

According to Chinese customs statistics, in June 2024, China's chrome ore imports reached 1.8449 million mt, up 33,200 mt MoM (1.83%) and up 338,400 mt YoY (22.46%). In June, China imported 1.5167 million mt of chrome ore from South Africa. From January to June 2024, China's total chrome ore imports were 10.3544 million mt, up 2.0992 million mt YoY (25.43%)……

In April, supply side, due to narrowing profit margins and intensified market competition, manganese salt factories in Guizhou entered maintenance and shutdown stages......

Chromium is a lustrous, hard, steel-gray metal renowned for its high melting point and resistance to tarnishing. Found naturally in the Earth's crust, chromium is essential in various industries. It is a crucial component in the production of stainless steel, giving it the desirable characteristics of strength and corrosion resistance. Additionally, chromium is used in the manufacturing of superalloys, which are vital in the aerospace industry, and in electroplating to provide a shiny, decorative finish and enhance durability. Its utility extends to the pigmentation sector, where it is employed in creating vivid colors for paints and dyes.

After magnesium prices fell below 18,000 yuan/mt in early March this year, the magnesium market once again fell below 18,000 yuan/mt in July amid complaints from magnesium ingot smelters and expectations from downstream buyers.