China: Silico manganese prices remain largely steady w-o-w with strong cost support and cautious steel demand

• Raw material costs remain firm, supporting prices
• Downstream steel demand cautious, transactions slow

Chinese silico manganese prices (Mn 65%, Si 17%) remained largely stable with slight decline by RMB 50/t ($7/t) w-o-w to RMB 5,860-6,160/t ($849-893/t) exw, inclusive of taxes, on 13 March 2026.

Silico manganese prices held mostly steady as futures edged higher, supported by firm manganese ore and electricity costs. Steel mill inquiries improved sentiment, though slow procurement and upcoming supply increases keep the market in a cautious balance.

Market updates

Strong ore prices tighten cost structure:

The silico manganese raw material market remained firm with strong cost support. Manganese ore prices increased as geopolitical tensions and higher sea freight pushed traders to hold offers.

Although coke prices slipped slightly, the effect on overall production cost is limited. Meanwhile, electricity prices remain high and manganese rich slag continues to rise, keeping overall silico manganese production costs elevated and discouraging manufacturers from offering goods at lower prices.

Cautious buying slows market transactions:

Downstream demand showed active inquiries as steel mill procurement gradually advanced, though actual transactions stayed cautious. The silico manganese 2605 futures contract closed at RMB 6,210/t ($900/t), up 0.29%, slightly improving spot market sentiment.

HBIS Group launched March silico manganese bidding with a first inquiry at RMB 6,100/t ($883/t) for 9,500 t. Spot prices for 6517 grade range between RMB 5,850/t–5,950/t ($848/t-$862/t) in northern regions and RMB 5,900/t–6,000/t ($855/t-$869/t) in the south, while steel mill inventory availability stands at about 15.49 days, reflecting relatively slow procurement.

Outlook

In the short term, the silico manganese market is expected to remain high and volatile. Strong manganese ore costs limit downside, while new production capacity from Inner Mongolia may ease supply tightness.

Downstream steel inquiries, led by HBIS bidding, will guide demand. Spot prices are likely to range between RMB 5,950/t – 6,200/t ($862/t-$898/t), with the main futures contract fluctuating around RMB 6,100/t – 6,250/t ($883/t-$906/t), depending on steel procurement activity and manganese ore arrivals.

(With inputs from CBC)