China: Silico manganese prices hold firm w-o-w despite sluggish downstream demand

Weak downstream demand curbs market momentum

ZCE futures decline by RMB 176/t ($24/t) w-o-w

CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices remained stable w-o-w to RMB 5,680-5,950/t ($788-$826/t) exw, including taxes.

Silico manganese prices remained stable, supported by firm ore costs and limited supply. However, weak demand and cautious steel procurement continue to restrict significant price movements in the market.

Market updates:

Silico manganese market remains firm: The domestic silico manganese market remained stable, with spot prices in major producing regions like Inner Mongolia and Ningxia showing modest gains. This stability is supported by firm manganese ore prices and strengthened cost pressures.

However, regional supply disparities, subdued demand, and cautious steel sector pricing continue to limit significant price movements, leading to a balanced and closely contested market environment.

Manganese ore market retains stability: The manganese ore market has begun to stabilize, with select varieties seeing mild price gains. As earlier low-priced deals phase out, spot market availability at lower levels has tightened, prompting some traders to lift their offers due to significant losses upon port arrival.

Nonetheless, downstream silico manganese producers continue to face margin pressure, which keeps the upward momentum of manganese ore prices in check.

Downstream demand remains soft: Downstream demand remains sluggish, with futures likely to stay weak in the near term. Manufacturers are hesitant to sell at higher prices, and market participants are adopting a more conservative stance. With the industry in its traditional off-season, alloy demand remains limited.

Meanwhile, power rationing and off-peak production policies in Inner Mongolia and Ningxia continue to restrict silicon-manganese output. As a result, the overall market outlook for silico manganese remains subdued.

ZCE futures inch down: Silico manganese futures on China’s Zhengzhou Commodity Exchange (ZCE) for September 2025 deliveries inched down by RMB 176/t ($24/t) w-o-w to RMB 5,668/t ($787/t) on 26 May compared to RMB 5,844/t ($811/t) on 19 April.

Outlook: In the short term, silico manganese prices are expected to remain volatile amid supply disruptions. However, weak downstream demand and inventory pressures may constrain price gains, while gradual market improvement is anticipated as demand recovers.