China: Silico manganese prices hold firm w-o-w amid cautious market sentiment

• Steady Mn ore tags lend cost support to SiMn
• ZCE SiMn futures for May’25 delivery fall $6/t
  

CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices were unchanged w-o-w at RMB 5,980-6,370/t ($827-$881/t) exw, including taxes. The market was stable, as participants adopted a cautious stance. Offers from silico manganese producers were also limited, signalling a more reserved approach.

Stakeholders particularly monitored upstream and downstream market trends, as well as upcoming steel mill bidding activities, for greater clarity on future direction.

Market updates

Raw material tags remain stable: In the raw material sector, manganese ore prices remained stable w-o-w. Although some grades were sold at lower values, the overall price environment was firm, providing continued cost support to silico manganese tags.

Despite the wait-and-watch atmosphere and light transaction volumes, no significant fluctuation is expected in the short term. Market participants should remain vigilant, particularly regarding replenishment activities by manufacturers and ongoing destocking efforts at ports.

Downstream demand stays tepid: Downstream demand was weak, primarily due to this period being the traditional off-season, where there is a lower need for alloy products. Factories’ reluctance to sell at lower prices has further compounded the market caution.

Additionally, power restrictions and peak production policies in regions such as Inner Mongolia and Ningxia continued to hamper silico manganese output. Given the lack of significant demand from steel mills and the ongoing market uncertainties, the overall sentiment remains pessimistic, with expectations of limited price movements in the near future.

ZCE futures decline: Silico manganese futures on China’s Zhengzhou Commodity Exchange (ZCE) for May 2025 deliveries declined by RMB 40/t ($6/t) to RMB 6,398/t ($882/t) on 10 March against RMB 6,438/t ($888/t) on 3 March.

Outlook

A subdued demand environment and cautious market behaviour suggest that the market will likely remain neutral in the short term. Participants will need to closely monitor the outcomes of steel mills’ post-holiday bids and the ongoing dynamics within the raw material sector for greater clarity.