CBC: The Chinese silico manganese market rose this week on increasing trading activity. Prices (Mn: 65%; Si: 17%) inched up by RMB 150/t ($21/t) to RMB 6,000-6,390/t ($856-$911/t) exw, including taxes.
Market driving factors were:
Steady movement of manganese ore market: Manganese ore market transactions moved slowly, with miners’ confidence in sustaining prices steadily declining. Currently, prices remain in a weak adjustment phase. However, demand for silico manganese is slowly recovering during the traditional peak consumption season, with industry insiders maintaining a cautious outlook.
Nevertheless, the possibility of a future market boost is not dismissed. Ongoing attention to changes in the supply-demand dynamics of silico manganese and fluctuations in raw material prices is essential for assessing future trends.
Downstream demand strengthens on optimism for steel procurement: Regarding downstream demand, the current futures market experienced fluctuations and rebounds, leading to improved industry sentiment. Additionally, with upcoming steel procurement, the industry remains hopeful for increased demand, and suppliers are optimistic about future prospects.
ZCE silico manganese prices rise: Silico manganese futures on China’s Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery increased by RMB 264/t ($38/t) to RMB 6,302/t ($899/t) on 27 September against RMB 6,038/t ($861/t) on 20 September.
Chinese billet prices rise w-o-w on improved market sentiments: Billet prices in Tangshan increased significantly by RMB 150/t ($21/t) to RMB 3,050/t ($435/t) w-o-w on 27 September. Prices are inclusive of 13% VAT. Increase in raw material and finished steel prices, rise in rebar futures throughout the week along with favourable macroeconomic news have supported billet prices.
Outlook
The market remains cautious, with both buyers and sellers taking a wait-and-see approach. Although raw material costs are supporting silico manganese prices, downstream acceptance remains limited. With recovery underway, alloy price trends may fluctuate in the near term.
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