- Output control policies curb demand from steel sector
- Demand emerges from new energy sector but at slow pace
CBC: Chinese silico manganese (Mn:65%, Si:17%) prices edged down by RMB 70/tonne (t) ($10/t) w-o-w to RMB 5,570-5,840/t ($783-821/t) exw, including taxes.
Silico manganese prices remained mostly stable, as manganese ore supply improved slightly, while domestic and export steel demand was weak. The new energy sector showed demand, but slow industrialization and inverted international prices continued to limit exports.
Market recap
Raw material market shows divergent trends: Manganese ore supply improved slightly after rail operations resumed in South Africa, but port inventories declined slowly. Coke prices stabilised amid environmental production curbs, while higher sulphuric acid costs added to production expenses.
In northern regions, producers switched to low- and medium-grade manganese ore due to high electricity costs, widening the gap in raw material quality.
Demand from steel sector remains soft: Steel industry demand remained subdued due to crude steel output control policies, with procurement largely driven by volume-based price reductions. Construction steel demand stayed weak, while technological advancements in the stainless steel sector contributed only modest growth.
Demand from the new energy sector began to emerge, but industrialization progressed at a slow pace. Export markets were impacted by the disparity between domestic and international prices, which reduced traders willingness to accept orders.
Outlook
In the near term, silico manganese prices are expected to remain volatile, with cost support and soft demand sustaining a bull-bear balance.
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