- Silico prices edge up amid supply imbalance
- Weak steel demand, high inventories limit market gains
CBC: China’s silico manganese (Mn:65%, Si:17%) prices edged up by RMB 20/t ($3/t) d-o-d to RMB 5,630–5,900/t ($790–$827/t) exw, including taxes, with an average price of RMB 5,765/t ($808/t) on 12 September.
Market Updates
Regional supply divergence persists: Northern producing regions maintained high operating rates supported by cost advantages, while southern producers faced reduced output enthusiasm due to elevated electricity costs. This led to a clear regional imbalance in supply. Inventory pressure remained evident, and although steel mill tender activity increased, overall supply-demand mismatch continued to weigh on the market.
Raw material market under pressures: Manganese ore import prices remained firm, with traders quoting positively. However, downstream buying interest was limited, and high port inventories restricted significant price gains. Electricity costs emerged as a key variable, with southern China losing its earlier price advantage, raising the possibility of future production cuts. Meanwhile, auxiliary raw materials fluctuated less, but manganese ore continued to dominate overall production costs.
Downstream demand remains polarized: The steel industry, the largest consumer, saw weaker procurement as sluggish real estate demand pressured industrial steel output, forcing mills to push for lower procurement prices. Stainless steel demand was steady but price-sensitive, showing limited acceptance of higher silico manganese offers. Despite this, upstream and downstream players remained locked in price negotiations, with long-term contracts dominating transactions.
Outlook
In the short term, silico manganese prices are expected to remain volatile with limited upward momentum. Cost support from raw materials will continue to counterbalance weak downstream demand.
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