- Firm South African ore tags support silico manganese
- Production cuts, suspensions expected in near term
CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices remained largely stable, edging up by RMB 20/tonne (t) ($3/t) w-o-w to RMB 5,590-5,860/t ($785 -823/t) exw, including taxes.
Silico manganese prices remained mostly stable with a slight uptrend, supported by firm South African ore prices and tight supply. However, higher Australian ore arrivals increased inventory pressure, while weak downstream demand and slow market activity limited further gains.
Market sentiments
Raw material market trends
South African manganese ore prices held firm amid low inventories, with traders showing strong reluctance to sell. In contrast, increased arrivals of Australian ore raised inventory pressure, prompting some traders to sell more actively, which slightly softened transaction prices.
Downstream alloy producers slowed procurement and showed limited acceptance towards higher raw material costs, resulting in reduced market activity and capped price growth.
Overall, raw material supply stayed stable, but varying supply-demand dynamics among various products led to divergent price movements, with cost support gradually becoming apparent.
Downstream market trends
On the demand side, the downstream market remained weak, putting pressure on silico manganese prices and capping any further price increases. Although there was a recovery in demand, it was slow, providing limited support to silico manganese prices.
Outlook
In the near term, silico manganese prices are expected to remain range-bound, as weak downstream demand offsets the limited cost support from raw material stability. However, prices could see a slight uptick if downstream demand improves gradually.
As Yunnan province enters its dry season, some silico manganese manufacturers plan to make production cuts or undertake suspensions. This could support silico manganese prices but would pressure ore demand.
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