- Rising raw material costs support price stability
- Demand recovery remains slow and limited
Chinese silico manganese prices (Mn 65%, Si 17%) remained largely stable w-o-w at between RMB 5,570 – 5,840/t ($791 – 822/t) exw, inclusive of taxes.
Strong cost-side support from firm manganese ore prices continued to underpin silico manganese prices, even as demand recovery remained gradual due to muted spot activity.
Market updates
Raw material market trends
Manganese ore prices remained firm, with overseas miners slightly raising their quotations. These increases have been passed on to domestic smelters, significantly pushing up production costs.
In addition, fluctuations in coke and other auxiliary materials have added further cost pressure.Raw material supply remains limited, particularly for high-grade ore, making spot procurement more challenging.
Miners bargaining power has strengthened, leading to strong selling resistance and providing solid support to prices. As a result, cost-side factors continue to underpin price stability and are unlikely to ease in the short term.
Downstream market trends
Downstream demand remains mixed, as the steel sector maintains stable procurement and gradual year-end restocking provides steady support for silico manganese.
However, demand growth from the new energy sector has yet to fully translate into the silico manganese market, keeping overall demand limited.
Steel mill procurement is largely driven by long-term contracts, while spot market activity remains limited, reflecting cautious downstream sentiment. Although demand-side improvements support prices, their impact is expected to be gradual.
Outlook
In the near term, silico manganese prices are expected to remain range-bound, supported by firm cost pressures from tight raw material supply, while downstream demand is likely to improve gradually.
(With inputs from CBC)
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