- Manganese ore prices rise, but coking coal weakens
- Subdued steel market sentiment caps price gains
Chinese silico manganese prices (Mn 65%, Si 17%) inched up by RMB 70/t ($10/t) w-o-w to RMB 5,730-6,000/t ($821-860/t) exw, inclusive of taxes.
The rise in silico manganese prices was supported by higher raw material costs and policy-driven supply constraints, which countered seasonal demand weakness and kept fluctuations narrow amid cautious market sentiment.
Market recap
Raw material market trends
Manganese ore prices increased w-o-w, driven by hikes from major suppliers such as Commillay and United Mining, alongside modest increases in Gabonese lump ore and Australian manganese ore prices. Port inventories are at slightly higher levels, and traders’ willingness to take delivery has improved, although transaction volumes remain steady.
Meanwhile, coking coal prices softened, slightly easing cost support for silico manganese. Nevertheless, strong international manganese ore prices offset weaker coking coal, reinforcing firm alloy prices.
Downstream market trends
Downstream steel demand remained subdued as the industry remained in its traditional off-season, leading steel mills to slow procurement and adjust bids lower. Although some large mills have released tenders, purchase volumes have declined compared with earlier periods, highlighting weak end-user demand.
At the same time, market expectations for winter stockpiling remained cautious, and downstream operating rates were only moderate. This lack of strong consumption momentum limited effective demand support, continuing to restrain upside potential for silico manganese prices.
Outlook
Silico manganese prices may edge higher in the near term, as rising raw material prices provide cost support, though weak downstream demand and cautious sentiment are likely to limit gains.
(With inputs from CBC)
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