The Chinese silico manganese market remained range-bound on declining downstream enquiries despite strong raw material prices, with prices (Mn: 65%; Si: 17%) inching down by RMB 100/t ($14/t) to RMB 7,340- 7,530/t ($1010-$1,036/t).
Market driving factors:
Manganese ore prices continue to rise: The silico manganese market remained stable w-o-w with manganese ore prices continue to stay high, while some regions see improved resumption of silico manganese production.
Furthermore, the railway track between the Gabonese ports of Owendo and Franceville has been fully restored. As a result, port arrival times in Gabon will improve, leading to a decline in port inventory. Additionally, disruptions in Australian ore shipments and support from the foreign market may cause ore prices to rebound.
Factories remained cautious with their quotations due to high costs. However, high quotations are gradually retreating as downstream enquiries become more cautious. In the short term, attention should be focused on the progress of upcoming steel procurement.
Downstream demand overview: Factories are eager to support prices, though industry insiders remain cautious. Market adjustments fuel optimism for increased demand. In the short term, monitor low-price transactions and the silicon manganese supply-demand relationship.
ZCE silico manganese prices inch down w-o-w: Silico manganese prices on China’s Zhengzhou Commodity Exchange (ZCE) for September 2024 delivery inched down by RMB 73/t ($10/t) to RMB 7,456/t ($1,026/t) on 8 July against RMB 7,530/t ($1,036/t) seen on 1 July. Expectations for increased demand stayed positive, and suppliers were optimistic about the future market.
Outlook
The current market scenario remained in a cautious wait-and-see mode, with both buyers and sellers observing the trends. With market recovery, the alloy trend is expected to continue improving.
Note: This article has been written in accordance with an agreement between CBC and BigMint.
Leave a Reply