China: Silico manganese prices remain stable w-o-w despite muted demand

• Steel mills reduce production, trim Jul’26 tender prices m-o-m
• Firm manganese ore prices, higher power tariffs in north offer support

Chinese silico manganese prices remained unchanged w-o-w, with the Mn 65%, Si 17% grade at RMB 5,570-5,830/t ($822-861/t) exw and Mn 60%, Si 14% prices at RMB 5,310-5,430/t ($784-802/t) in the week ended 20 July 2026.

The silico manganese market in China remained largely stable this week as production cuts, maintenance shutdowns, and ample inventories at steel mills pressured demand. Steel mills also maintained need-based procurement after reducing July tender prices. However, firm manganese ore costs continued to underpin the market despite high port stocks.

Market updates

Firm manganese ore prices, high power tariffs offer cost support: Stable prices of manganese ore and elevated electricity tariffs offered cost support to silico manganese prices.

Manganese ore prices remained broadly stable as elevated port inventories and a persistent supply surplus continued to cap any meaningful recovery. Higher electricity tariffs in northern producing regions and relatively firm import costs provided underlying cost support. However, rising imported ore inventories at ports continued to limit sellers’ pricing power, despite miners resisting price cuts.

Muted demand from steel mills curbs trading activity: Demand for silico manganese remained subdued as major steel mills reduced July procurement prices m-o-m, dampening market sentiment. Ongoing maintenance and production curbs at steel mills continued to weigh on alloy consumption, while buyers limited purchases to immediate requirements. Overall, muted trading activity reflected the seasonal slowdown in steel demand.

Outlook

China’s silico manganese market is expected to remain largely stable as weak steel demand offsets ongoing production cuts. Elevated producer inventories and softer manganese ore prices are likely to limit any significant price recovery, with market participants closely watching major steel mill tender prices for further direction.

With inputs from CBC