- Raw material weakness reduces production costs
- Export restrictions weigh on market dynamics
CBC: Chinese silico manganese (Mn:65%, Si:17%) prices edged down by RMB 80/tonne (t) ($11/t) w-o-w to RMB 5,590-5,860/t ($784-$822/t) exw, including taxes.
Silico manganese prices remained under pressure, with ore prices falling amid rising port inventories. Weak downstream demand and export restrictions added further strain, leaving the market with limited near-term relief.
Market updates
Higher ore inventories weigh on cost support: Weak raw material performance reduced silico manganese production costs and led to decreased price support.
The manganese ore market remained under pressure, with prices of South African semi-carbonate and Gabonese ore at Tianjin Port continuing to decline. Rising port inventories led to lower offers, eroding cost support.
Market sentiments for manganese-rich slag weakened, with some factories expected to cut production due to cost inversion.
Downstream demand remains soft: The steel industry PMI fell below the boom-bust line, reflecting a slowdown in production, particularly with expected lower industrial steel output. However, the manufacturing PMI, showed seasonal growth in production and procurement, offering some support for raw material demand.
Although the index of new export orders rebounded, India’s tariff policy continued to restrict domestic silico manganese exports.
Overall, downstream demand did not improve significantly, with steel mills keeping price pressure on procurement and the silico manganese market under significant destocking pressure.
Outlook
In the short term, silico manganese prices are expected to remain weak and volatile, with limited upside due to high supply and subdued demand.
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