China: Silico manganese prices edge up w-o-w

• Raw material costs remain largely stable, production steady
• Demand recovers moderately amid mills winter restocking

Chinese silico manganese prices (Mn 65%, Si 17%) edged up by RMB 50/t ($7/t) w-o-w to RMB 5,700-5,920/t ($819-852/t) exw, inclusive of taxes.

Silico manganese prices remained largely stable, supported by steady raw material supply and moderate downstream demand. Production costs saw minor fluctuations, while market participants maintained a cautious approach. Overall, activity in the silico manganese market showed a slight improvement, though downstream momentum remained limited.

Market recap

Raw material market trends

Manganese ore supply remained stable, with no significant disruptions in major producing regions such as South Africa, supporting silico manganese production costs. Export logistics remained smooth, while traders continued to purchase cautiously on a need-based basis.

On the cost front, coke prices showed minor fluctuations, providing limited support to silico manganese production costs. The raw material market remained weak, with price movements restricted to a narrow range.

Meanwhile, silico manganese production continued at stable levels. Market participants maintained a cautious approach to raw material procurement amid unclear signals from downstream demand.

End-user market trends

Downstream demand recovered moderately, supported by steel mills winter storage and replenishment needs, which provided support to silico manganese prices. However, profits on downstream steel production were modest, and steel mills limited acceptance of high-priced raw materials restricted potential price increases.

Overall, the downstream market showed early signs of recovery, with trading activity in silico manganese increasing slightly, but strong procurement momentum was absent. Market sentiment stayed neutral, with capital shifting to other sectors.

Outlook

In the near term, silico manganese prices will likely stay at around current levels, with stable raw material supply and gradual downstream demand recovery expected to cap upside gains.

(With inputs from CBC)