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

• Market activity muted amid regional supply variations
• Weak steel demand weighs on market sentiment

CBC: Chinese silico manganese (Mn:65%, Si:17%) prices remained steady w-o-w at RMB 5,580-5,850/t ($777-$815/t) exw, including taxes.

Silico manganese prices remained largely stable. Northern output stayed steady, while southern producers cut back due to rising costs, leading to regional supply imbalances. The delay in the EU battery bill eased export pressure, but domestic carbon policies continued to weigh on demand. Market sentiment remained cautious.

Market overview:

Global supply concerns offset by Australian exports: The manganese ore market remained weak, with prices at Tianjin Port staying stable, though actual trading activity was subdued. Mining disruptions in South Africa raised global supply concerns, while the recovery of Australian exports helped ease some of the pressure.

The third round of coke price cuts, along with reduced electricity costs in certain regions, lowered production expenses. Ongoing price reductions by global suppliers weakened cost support expectations, while high port inventories further limited the influence of raw material prices on silicon manganese.

Seasonal slowdown deepens spot market pressure: Weak demand in the steel industry persisted, with reduced rebar production significantly limiting silicon manganese purchases. Steel mills maintained on-demand procurement, and bidding prices declined notably, reflecting strong downstream pressure.

Although demand from the new energy sector increased, it had little impact on the silicon manganese market. Traders remained cautious, with transactions mostly limited to essential demand. The seasonal slowdown in construction steel demand was sharper than expected, and the narrowing futures basis added further pressure to the spot market.

Outlook

In the short term, the silico manganese market is likely to remain volatile, with key factors to focus on including the impact of summer power policies on production costs and cost-side support from manganese ore arrivals.