- Mainstream prices decline w-o-w
- Steel mills cut purchases amid weak profits
Chinese silico manganese prices declined w-o-w, with the Mn 65%, Si 17% grade at RMB 5,650-5,950/t ($844-888/t) exw and Mn 60%, Si 14% prices at RMB 5,380-5,500/t ($803-821/t).
Market updates
Weaker raw material support pressures prices: Coking coal supply has increased as production resumes, weakening expectations of tight supply and reducing support for alloy production costs. Manganese ore prices at Tianjin Port also corrected slightly as buyers pushed for lower prices, while some mainstream grades at Qinzhou Port remained firm due to lower inventories. Overall, ample manganese ore supply continues to limit the scope for sustained price increases.
Lower steel mill buying weighs on demand: Although Hebei Iron & Steel’s September tender price was higher than last month, procurement volumes declined both m-o-m and y-o-y. Steel mills are mainly replenishing stocks for immediate needs as shrinking profits and weaker steel demand weigh on purchasing. Some mills have also been advised to reduce pig iron output, which could further reduce silico manganese consumption.
Outlook
Silico manganese prices are expected to remain weak and volatile in the near term, with weaker steel demand and softer raw material support likely to keep pressure on prices.
Leave a Reply