- Mounting port inventories weigh on prices
- Weak steel demand restrains market momentum
CBC: Chinese silico manganese (Mn:65%, Si:17%) prices remained largely stable, edging down by RMB 50/t ($7/t) w-o-w to RMB 5,920-6,190/t ($824-$862/t) exw, including taxes.
Silico manganese prices remain stable with a slight dip due to rising inventories at Qinzhou Port. However, increased coke and slag costs have raised production expenses, while weak steel demand and power rationing policies continue to weigh on the market.
Market updates:
Stock pressure mounts at Qinzhou port: Pressures are emerging at Qinzhou Port, raising caution over potential downward pressure from increased arrivals. Despite this, minor price fluctuations were seen for South African and Australian ore, with port spot prices rising in line with international trends.
However, the fourth round of coke price hikes further increased silico manganese production costs, while manganese-rich slag prices also climbed, lifting ex-factory rates in Hunan and Hubei.
Steel usage stagnant amid multiple headwinds:High temperatures, heavy rainfall, and sluggish real estate and infrastructure activity have kept apparent steel consumption stagnant. Weak downstream demand continues to limit market momentum, preventing any significant recovery in steel usage.
At the same time, limited acceptance of alloy price increases and production cuts in southern China, due to power rationing policies, is widening regional demand gaps. This uneven demand pattern is adding further uncertainty to the steel and alloy markets.
Outlook
Silico manganese prices may remain volatile in the near term, with upside capped by supply-demand imbalances unless ore prices stay firm and steel output improves.
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