Silico-manganese contract price rally on ZCE not driven by...

Silico-manganese contract price rally on ZCE not driven by fundamentals - sources
The most-traded silico-manganese (SiMn) January contract on the Zhengzhou Commodities Exchange (ZCE) has undergone a recent big rally but participants say it lacks fundamental support, Metal Bulletin has learned.
The most-traded January SiMn contract on the ZCE stood at 8,414 yuan ($1,271.94) per tonne as of Wednesday December 6, its highest price this year. Chinese market participants regard the price rally as speculation or driven by capital, but not driven by fundamental reasons. Chinese silico-manganese futures prices ticked up on the news that Ningxia province will be cutting ferro-alloy production this winter for environmental protection. Ningxia province will suspend production in certain areas in the region, which has bolstered concerns over potential supply tightness and supplied the logic for the SiMn price increase, according to market sources.