The factors affecting the price of silicon-manganese alloy are roughly the following 7 parts:
1. Demand factors:
Silicon-manganese alloys are mainly used in the steelmaking industry, with less demand in other industries. The demand for silicon-manganese alloys in steelmaking determines the demand for silicon-manganese alloys to a large extent. The steel price trend also affects the changes in silicon-manganese prices. , especially the price of rebar is more closely related to the price of silicon-manganese alloy, and its trend determines the price trend of silicon-manganese. The rise in steel prices will also drive up the price of silicon-manganese alloys; conversely, when steel prices fall, the demand for silicon-manganese alloys will also fall, accompanied by a fall in silicon-manganese prices.
2. Supply factors:
We all know that rare things are more expensive. When the supply exceeds demand, the price of silicon-manganese alloy is bound to rise; when there is excess supply, the price of silicon-manganese alloy is bound to fall.
3. Raw material cost:
The production cost of ferromanganese alloy is mainly composed of the purchase cost of manganese ore (including imported ore), electricity and coke, of which manganese ore cost accounts for about 60%. Most of my country's manganese ore resources rely on imports, so the price changes of imported ores have a greater impact on the price of silicon-manganese alloys. The price changes of manganese ore alloys are highly consistent with the price changes of imported ores. The price changes of imported ore are closely related to the inventory of imported ore at the port. If the inventory is high, the ore price will fall; if the inventory is low, the ore price will rise.
4. Electricity cost:
Ferroalloy smelting is also a high-energy-consuming industry, and electricity price is one of the main parts of the cost, which affects the migration of its entire industrial layout from south to north. Before 2011, the production areas of silicon-manganese alloys were mainly concentrated in Guangxi and Hunan, which accounted for more than 40% of my country's total. As the electricity price advantage in the north gradually emerges, the proportion of output in Ningxia, Mongolia and other places has increased rapidly, and now accounts for more than 70%. It is estimated that manganese ore, electricity and coke account for approximately 50%, 40% and 8% of the production cost of silicon-manganese alloy respectively.
5.Transportation cost:
Since the production areas of silicon-manganese alloys are concentrated and separated from the places of consumption, freight costs will be high. Hengxing Metallurgy produces silicon-manganese alloys. Welcome to inquire and order.
6. Policy factors:
Due to the country's environmental protection policy, silicon-manganese alloy production areas will increase investment in environmental protection, and some companies that do not meet environmental protection standards are forced to stop production, resulting in an increase in the cost of producing alloys.
