- Weak manufacturing, export demand weigh on tags
- High coke, stable manganese ore costs lend support
CBC: Chinese silico manganese (Mn:65%, Si:17%) prices dropped by RMB 220/tonne (t) ($31/t) w-o-w to RMB 5,700-5,970/t ($795-$833/t) exw, including taxes.
Silico manganese prices eased slightly, as weak manufacturing demand, coupled with subdued exports, continued to dampen overall market sentiment despite seasonal support from automotive and infrastructure. Additionally, high coke costs and stable manganese ore tags pressured producers’ margins, while shipping delays added to raw material supply concerns.
Market recap
Manufacturing sector sees muted consumption: Silico manganese prices edged down, as steel mills conducted need-based procurement, with some extending bidding cycles to reduce raw material costs. A seasonal recovery in automotive steel demand and infrastructure projects provided some support, but silico manganese consumption in manufacturing remained weak.
In exports, Southeast Asian buyers pressed for lower prices, while sea freight volatility kept foreign trade orders limited.
Rising production costs support prices: Prices, however, were supported by raw material costs, which trended higher. High coke prices, driven by limited coking coal availability, continued to pressure silico manganese smelting margins. Meanwhile, manganese ore prices remained stable, but rising port inventories led to bearish sentiment.
Moreover, reduced shipping efficiency in southern mining regions during the rainy season temporarily disrupted local raw material supply and added upward pressure on production costs.
Outlook
In the short term, prices are expected to remain range-bound, with elevated smelting costs due to high coke prices offset by weak consumption and cautious export activity.
Leave a Reply