China: Silico manganese prices edge down w-o-w amid market uncertainty

• Demand softens as mills turn cautious
• ZCE futures decline by RMB 116/t w-o-w

CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices edged down by RMB 50/t ($7/t) w-o-w to RMB 5,780-6,050/t ($793-$830/t) exw, including taxes.

There was uncertainty over prices and supply, and steel mills adopted a cautious, wait-and-watch approach ahead of their next round of procurement. Traders showed low enthusiasm for deals, leading to reduced market activity.

Market updates

Manganese ore supply surges: With the resumption of shipments from South32’s Australian mines and increased exports from Gabon, the manganese ore market witnessed higher material availability. These relaxed supply conditions exerted downward pressure on ore prices.

However, ore prices remained stable overall, although a cautious market atmosphere led to lighter transactions. Consequently, ore prices continued to provide cost support for silico manganese alloys.

In the short term, attention will need to be paid to alloy manufacturers’ procurement, replenishment, and port destocking trends.

Downstream demand slows down: Downstream demand for silico manganese was weak, reflected in a w-o-w decline in futures prices of the same. Moreover, market participants expect futures to stay subdued in the short term. Amid sluggish demand, smelters were unable to sell at higher prices due to a lack of buyer acceptance, and industry sentiment was cautious.

Currently, in the traditional off-season, alloy production is low. Power rationing and off-peak production policies in Inner Mongolia and Ningxia also weighed on silico manganese output.

ZCE futures decline: Silico manganese futures on China’s Zhengzhou Commodity Exchange (ZCE) for May 2025 deliveries inched down by RMB 116/t ($16/t) w-o-w to RMB 5,804/t ($796/t) on 28 April compared to RMB 5,920/t ($812/t) on 21 April.

Outlook

The silico manganese market will remain bearish due to high inventory, weak demand, and cost pressures. Expectations of further price declines are likely to rise as the May Day holiday approaches.