- Manganese ore, coking coal prices stay firm; import costs squeeze margins
- Construction activity improves, offering partial support to consumption
Chinese silico manganese prices (Mn 65%, Si 17%) edged up by RMB 100/t ($15/t) w-o-w to RMB 6,270/t ($911/t), with mainstream spot levels increasing to RMB 6,150-6,450/t ($893-937/t) exw, compared with RMB 6,050-6,350/t ($879-922/t) in the previous week.
The silico manganese market remained firm, supported by elevated raw material costs, while cautious steel demand and uneven procurement limited overall price gains.
Market updates
Cost support underpins market sentiment
The market continued to draw strength from elevated input costs. Prices of manganese ore and coking coal remained firm, while high import and freight costs sustained pressure on production margins.
Suppliers largely maintained firm offers, supported by limited scope for cost correction in the near term. Elevated costs continued to underpin prices, although profitability remained constrained.
Cautious steel demand caps upside
On the demand side, steel mills maintained a conservative procurement strategy, with buying largely restricted to need-based requirements due to weak profitability.
Some large mills reduced procurement volumes compared to previous cycles, reflecting subdued immediate demand. However, early signs of recovery emerged as seasonal construction activity gradually improved, offering partial support to consumption.
While demand recovery is underway, a strong rebound is yet to materialise, keeping overall market sentiment cautious.
Outlook
Silico manganese prices are expected to remain firm in the near term, supported by strong cost-side fundamentals and firm producer stance. However, cautious steel demand and margin pressures at mills are likely to limit further gains. Prices may continue to fluctuate within a narrow range, with gradual demand recovery providing partial support.
(With inputs from CBC)
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