Zhenxin will bring you the latest analysis of the new 2020-2021 silico manganese alloy market. What are the characteristics of silico manganese price fluctuations in the past year and what trends will it have in the new year? Next, we will analyze it in detail for you.
Silico Manganese Product Introduction
What is silico manganese?
Applications of silico manganese
Manganese silicon is a commonly used compound deoxidizer for steelmaking, and it is also a reducing agent for the production of low-carbon ferromanganese and electro-silicon thermal production of metallic manganese. Manganese and silicon are the main alloying elements used in carbon steel. Manganese is one of the most important deoxidizers in the steelmaking process. Almost all steel grades need to be deoxidized with manganese. A large amount of manganese and silicon are added to molten steel in the form of ferroalloys. The main ferroalloys include ferro manganese, silico manganese, and ferro silicon.
Industry Overview of Silico Manganese Market
Distribution of global silicon manganese market demand
In modern industry, manganese and silico manganese alloys are used in various fields of the national economy.
A small amount of manganese and manganese alloys are used in other industries
The iron and steel industry is the most important field of silico manganese, with an amount of 90%-95%, mainly used as a deoxidizer and desulfurizer in the process of ironmaking and steelmaking, and used to make alloys. The remaining 5%-10% of manganese is used in other industrial fields, such as the chemical industry (manufacturing various manganese-containing salts), light industry (used in batteries, matches, printing paint, soap making, etc.), building materials industry (glass and ceramics) Colorants and fading agents), defense industry, electronics industry, environmental protection, and agriculture and animal husbandry, etc.
The steel industry has a huge demand for manganese
The downstream industries of ferroalloys are mainly steelmaking companies. The most commonly used ferroalloys in the steelmaking process are ferrosilicon, ferromanganese, silicon manganese, and ferrochrome. Among them, ferrosilicon and ferromanganese are mainly used for smelting ordinary steel, while silico manganese and ferrochrome are mainly used for smelting special steel.
The role of silico manganese in the smelting of ordinary steel is similar to that of “seasoning”, although the amount is small, it is indispensable. If 1 ton of crude steel consumes about 10-12kg of silico manganese, the cost of crude steel is US$464/ton, and the price of silico manganese 6517# is US$1005/ton. The cost of silico manganese is only 2.5-3%, and the impact of silico manganese price fluctuations on steel is quite limited.
Global reserves of manganese resources and distribution of silico manganese production capacity
As of 2016, there are 690 million tons of manganese reserves in the world, which are mainly distributed in South Africa, Ukraine and Australia. The reserves account for 29.0%, 20.3% and 13.2% of the global reserves, respectively. In 2016, China’s manganese reserves were 44 million tons, accounting for 7.1% of global reserves.
Although China’s manganese reserves are not dominant, ferroalloys such as silico manganese have strong competitiveness in the international market. With the continuous improvement of access conditions in the silico manganese industry, excellent Chinese ferroalloy suppliers have gradually entered the forefront of industry competition, and their share and influence in the international market have continued to increase. More and more customers are willing to choose Chinese ferroalloy companies for cooperation.
2020-2021 Silico Manganese Price Trend Analysis
Summary of silico manganese price trend
In 2020, the silico manganese price fluctuated significantly and fluctuated frequently throughout the year. However, overall, the price trend of silico manganese has remained stable, with slight fluctuations, and the overall price trend is increasing. For the silicon manganese alloy industry, there are different degrees of profit.
What are the main factors affecting the silico manganese price？
What are the factors affecting the price of silico manganese alloy? Let’s analyze it.
1. Upstream mineral resource supply
The cost of silica is low, accounting for about 2% of the cost of silico manganese alloy, which has a minimal impact on the silico manganese price; manganese ore accounts for about 60% of the cost of silico manganese, which has a greater impact on the silico manganese price. In recent years, the rapid development of the iron and steel industry has promoted the demand for silico manganese alloys, resulting in a sharp increase in the demand for manganese ore. Therefore, the fluctuation of international silico manganese price has an important impact on the silico manganese price in all countries.
2. Downstream steel industry demand
Iron and steel is a direct downstream industry of ferroalloys, and its prosperity directly affects the price trend of ferroalloys. Recently, the World Steel Association released the World Steel Statistics 2021. The report shows that the global crude steel output in 2020 is 1.878 billion tons, an increase of 0.5% year-on-year, and the compound growth rate of global crude steel output from 2016 to 2020 is 3.6%.
- In 2020, the annual crude steel output in Asia will reach 1.374.9 billion tons, a year-on-year increase of 1.5%.
- Among them, China’s crude steel output reached 1.053 billion tons, an increase of 5.2% year-on-year.
- In 2020, the EU’s annual crude steel output was 138.8 million tons, a year-on-year decrease of 11.8%.
- Among them, Germany’s crude steel output was 35.7 million tons, a year-on-year decrease of 10.0%.
- In 2020, the annual crude steel output in the CIS region was 102 million tons, an increase of 1.5% year-on-year.
- Among them, Russia’s estimated production is 73.4 million tons, an increase of 2.6% year-on-year.
- Ukraine’s crude steel production is 20.6 million tons, a year-on-year decrease of 1.1%.
Affected by the global new wave of COVID-19, the growth rate of crude steel production is much lower than the level of previous years. The downstream downturn has also spread to the ferroalloy industry, and the silico manganese price has been affected to a certain extent.
3. Electricity price fluctuations
Ferroalloy is a high energy consumption (electricity) industry, and electricity accounts for a relatively high proportion of its cost. With the consumption and shortage of energy worldwide, the impact of electricity costs on the ferroalloy industry will become greater and greater.
In order to reduce electricity costs and reduce the impact of tight water and electricity supply on the production of ferroalloy manufacturers during the dry season, ferroalloy manufacturers generally increase production during the wet season when water and electricity supplies are sufficient and electricity prices are relatively cheap.