Chinese silico manganese prices remained relatively stable with a minor decline by RMB 100/t ($14/t) as lowered demand weighed on the prices. Prices were at around RMB 6,010/t to 6,110/t ($831/t-$845/t). All prices were ex-works and inclusive of taxes.
Factors that drive the Chinese silico manganese prices were:
Limited market demand, production halts: The silico manganese market remained generally stable, regardless of unexpected challenges with market demand and production halts in the Ningxia area. The general trading activity was also hindered by the raw material markets’ poor performance.
Chinese billet prices fall w-o-w: Chinese billet prices fell by RMB 130/t ($18/t) w-o-w to RMB 3,280/t ($454/t) on 29 March against 22 March. Weak demand of raw materials, low steel production and drop in rebar futures have weighed on billet prices. Meanwhile, Chinese SHFE rebar futures recorded a significant drop of RMB 200/t ($28/t) w-o-w to RMB 3,412/t ($473/t) today as against 22 March.
Reluctant market move: Due to the futures market’s continued dismal performance, industry participants acted hesitantly. But as steel procurement moves forward, there’s reason to be optimistic about higher demand.
It’s encouraging to notice that suppliers were optimistic about the market outlook. Monitoring low-price transactions and changes in the supply and demand relationship of silicon manganese will be crucial in the short term.
Railway track repairs: The reconstruction of the railway track connecting the ports of Gabon was a welcome step forward that might eventually result in better market circumstances.
Prices may rise as a result of the anticipated drop in port inventories and outside market support. It will be critical to keep a close eye on these variables in case anything unexpected happens.
ZCE prices remain stable: Silico manganese futures for last week deliveries on China’s Zhengzhou Commodity Exchange (ZCE) were also consistent w-o-w at RMB 6,100/t ($844/t) on 27 March, 2024 which could also be the reason for domestic market price consistency.
Outlook
Silico manganese prices in China are likely to remain stagnant in the short term. Disappointing performances in the manganese ore and coke markets, coupled with expectations of lower downstream prices, are fuelling cautiousness.
Close monitoring of supply-demand dynamics, regional market activity, and downstream developments will be crucial for navigating this uncertain market landscape.
Note: This article has been written in accordance with an agreement between CBC and BigMint.