- Firm raw material costs continue to support prices
- Subdued downstream demand limits price gains
Chinese silico manganese prices (Mn 65%, Si 17%) remained largely stable, edging down by RMB 50/t ($7/t) w-o-w to RMB 5,520 – 5,790/t ($782 – 821/t) exw, inclusive of taxes.
Silico manganese prices remained largely stable over the week. Strong raw material cost support helped limit further declines, while weak downstream demand and cautious buying sentiment continued to cap any upside momentum.
Market updates
Raw material market trends
Manganese ore prices remained firm due to tight supply from overseas mines and reduced selling by domestic traders, which supported silico manganese production costs.
Structural shortages of high-grade ore persisted, although increased supply from South Africa partially eased supply pressure.
Cost-side support remained the key factor limiting price declines, strengthening miners bargaining power and making spot procurement more challenging.
Downstream market trends
Downstream demand showed clear divergence. Procurement from the traditional steel sector slowed, while alloy inventories accumulating gradually thereby limiting consumption.
Although demand from the new energy sector increased, its overall share remained small and was insufficient to offset weakness in steel demand.
Steel mill tender activity declined m-o-m, with market transactions largely limited to essential procurement. The market maintained a cautious buying stance, with limited inquiries weighing on prices.
Outlook
Silico manganese prices are expected to remain rangebound, with cost support limiting downside and weak demand likely limiting any rebound.
(With inputs from CBC)
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