- Coke prices climb up, lifting production costs
- Inventory holding periods rise on slow demand
CBC: Chinese silico manganese (Mn:65%, Si:17%) prices inched up by RMB 190/t ($27/t) w-o-w to RMB 5,770-6,040/t ($807-$844/t) exw, including taxes.
Silico manganese production remained stable w-o-w, with plants in the north aided by lower power costs, while output from smelters in the south dipped amid cost pressures. Despite high port inventories, concerns over South African supply persisted. Futures activity reflected mixed sentiment amid growing market uncertainty.
Market recap
Domestic manganese ore tags face pressure: The manganese ore market reflected a strong external trend, but a weak internal one. International suppliers maintained firm offers due to rising freights, but high inventories at Chinese ports weighed on spot prices.
At Tianjin Port, limited transactions and cautious sentiment among traders led to reduced market liquidity.
Coke prices rise, lifting production costs: Coke prices rose following a broad rebound in the black commodities market, with two rounds of price hikes implemented. This raised silico manganese production costs.
In Inner Mongolia, peak summer power demand slightly raised electricity costs in some production areas, though the overall impact remained limited.
End-user demand sees mixed trends: While traditional construction steel demand weakened due to the seasonal slowdown, mills continued silico manganese procurement on a need-based basis. Producers remained cautious and continued to resist higher raw material costs.
Despite continued growth in demand from the new energy sector, the transmission of this uptick to the silico manganese segment remained sluggish.
Although overseas inquiries, particularly from Southeast Asia, saw a slight uptick, actual transactions were constrained by unviable export prices.
Meanwhile, traders’ silico manganese inventory turnover periods lengthened, with trade activity largely driven by immediate needs.
Outlook
In the short term, silico manganese prices are likely to stay range-bound, with resistance expected from slow ore destocking and weak steel margins and support from rising coke costs.
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