China: Silico manganese prices hold steady w-o-w, supported by firm ore costs

• Limited supply, strong offers keep ore prices stable
• Stainless steel demand offers support to alloys prices

CBC: Chinese silico manganese prices (Mn 65%, Si 17%) in China remained largely stable over the week, edging down slightly by RMB 20/t ($3/t) w-o-w to RMB 5,560-5830 /t ($783-821/t) exw, inclusive of taxes, supported by firm manganese ore prices and moderate stainless steel demand.

Market updates

Raw material market trends

Manganese ore prices remained firm, supported by fewer low-priced shipments and limited room for negotiation. Mainstream semi-carbonate ore prices at Tianjin Port were steady, while Gabonese lump ore continued to trade at higher levels. Inventory at Qinzhou Port remained low, and shortages of certain ore types further strengthened prices.

In the international market, overseas miners maintained a strong pricing stance, with Gabonese lump ore suppliers in Cornwall and United Mining raising their offers for Australian lump ore.

Although coke prices remained unchanged, the overall market showed mixed trends, with high-grade ore displaying stronger resistance to price declines.

Downstream market trends

The stainless steel market did not meet peak-season expectations, but demand still provided some support, leading to a slight increase in silico manganese procurement. However, steel demand entered the traditional fourth-quarter off-season, and mills were nearing their maintenance shutdown period ahead of the Spring Festival, further reducing demand.

Steel mills remained cautious in recent tenders, keeping bid prices low while awaiting guidance from new capacity ramp-ups and the next round of tender prices. Although the export market was approaching Christmas, and pre-holiday stockpiling began, overall demand was affected by the off-season. Expectations of further weakening led to cautious purchasing and a gradual build-up of alloy inventories.

Outlook

Silico manganese prices are expected to remain range-bound in the near term, with firm cost support limiting further downside. Off-season demand will likely continue to restrain buying interest.