- Raw material pressure continues to persist
- Steel demand remains weak and cautious
Chinese silico manganese prices (Mn 65%, Si 17%) edged down w-o-w by RMB 50/t ($7/t) to RMB 5,630-5,970/t ($830-880/t) exw. The market maintained a weak but relatively resilient trend, as tightening supply from production restrictions and maintenance shutdowns offset subdued downstream demand. While steel mills continued cautious procurement, reduced spot availability prevented any major price decline.
Market updates
Weak ore demand keeps market under pressure: The manganese ore market remained under pressure after major miners lowered June offers to China, especially for high-grade ore. However, rising electricity costs and prolonged losses forced several silico manganese producers to reduce operations or enter maintenance, tightening overall market supply. Despite high port inventories, declining production and limited spot circulation strengthened underlying market support and reduced bearish pressure on prices.
Soft steel demand continues pressuring market: Operating rates among silico manganese producers continued to decline amid elevated power costs and shrinking profit margins, with several plants entering maintenance phases. However, downstream steel mills maintained cautious procurement strategies and continued suppressing purchase prices due to weak profitability. Limited bulk transactions and subdued trading sentiment kept overall market activity sluggish, restricting any strong recovery in silico manganese prices.
Outlook
Chinas silico manganese prices are expected to remain weak in the near term, as sluggish steel demand, high inventories, and cautious procurement continue pressuring prices despite ongoing production cuts and tightening supply conditions.
(With inputs from CBC)
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