- Prices edge down amid weak spot sentiment
- Oversupply and cautious steel demand weigh on market
Chinese silico manganese prices (Mn 65%, Si 17%) edged down slightly w-o-w to RMB 5,790-6,090/t ($851-895/t) exw, compared with RMB 5,930-6,230/t ($872-916/t) in the previous week. The market weakened further, as sluggish downstream demand and oversupply pressure continued to outweigh limited cost-side support.
Market updates
Weak market fundamentals pressure prices
Although manganese ore prices remained relatively stable, persistent oversupply and large volumes of hidden inventories continued to weigh on the market. High warehouse stocks and weak futures sentiment further pressured spot prices, while smaller southern producers faced rising losses and growing shutdown intentions.
Weak steel demand limits procurement activity
Downstream steel mills maintained cautious procurement amid weak finished steel demand, high inventories, and margin pressure. Purchasing remained largely need-based, while aggressive price pressure from mills continued to weaken producers’ bargaining power and trading sentiment.
Outlook
Silico manganese prices are expected to remain weak and range-bound in the near term, as sluggish steel demand and oversupply continue to pressure the market. Any meaningful recovery may depend on stronger macro support or large-scale production cuts.
(With inputs from CBC)
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