Are Chinese Silico Manganese Prices Edging Downwards?

The Silico Manganese producers in China are gradually accepting lower prices following the finalization of the new tender by the major Chinese steel companies.

Considering the new tender price for Silico Manganese in China at RMB 9,200/MT (USD 1340/MT) vis-à-vis the expectation of RMB 9,300-9,400/MT (USD 1354-1369/MT), the sentiment of the market participants towards the high offers has weakened. In the previous week, the mainstream price of Silico Manganese went below RMB 9,000 (USD 1310/MT) to RMB 8,600-8,800/MT (USD 1252-1281/MT). Moreover, this week the same has slightly slipped further to RMB 8,500-8,700/MT (USD 1238-1267/MT) on the backdrop of modest demand.

The price index shows that the price of Silico Manganese 65-17 continued to fluctuate and the overall situation remained weak. Specifically, prices in the provinces of Henan, Hebei, Shandong, and Jiangsu are between RMB 8915-9141/MT (USD 1298-1331/MT).

Futures Market

Silico Manganese contract opened at the slightly higher position and fluctuated disorderly with a slight upward trend, as the main tone throughout the day. After reaching the high point, it gradually fell back before closing. Opening at 8366, it reached the highest value of 8488, and the lowest at 8330, closing at 8430 and settled at 8414, it witnessed an increase of 0.77% (64 points).

Manganese Ore Market

Considering a drop in Silico Manganese prices, the alloy producers have become cautious which in turn could weaken the ore market. However, there has not been any change so far in port offers.