- Manganese ore prices firm amid supply-side support
- Stable steel output, cautious demand limit upside
Chinese silico manganese prices (Mn 65%, Si 17%) edged down by RMB 30/t ($4/t) w-o-w to RMB 5,700-5,970/t ($818-857/t) exw, inclusive of taxes.
Silico manganese prices remained largely stable, backed by firm ore costs and stable steel output. Although construction demand softened seasonally, stable manufacturing demand and post-holiday expectations provided support.
Market updates
Raw material market trends
The manganese ore market stayed firm, with overseas quotations edging higher and supporting domestic prices. Prices for key origins such as South Africa and Gabon rose steadily, while traders maintained a strong holding sentiment and were reluctant to sell.
Ahead of the Spring Festival, alloy producers carried out gradual restocking, though procurement remained cautious. Shipping market fluctuations slowed arrivals and caused structural shifts in port inventories. Firm cost support, especially in the southern production regions, underpinned the recent strength in silico manganese prices.
Downstream market trends
The steel industry maintained a relatively stable production pace, keeping demand for silico manganese steady. Steel mills slightly raised their tender prices, indicating better market acceptance while pre-Spring Festival restocking demand emerged though procurement volumes remained limited due to financial constraints.
Construction demand weakened seasonally, while manufacturing demand remained relatively stable. Market participants monitored post-holiday production resumption and were cautiously optimistic about demand recovery, which lent support to prices.
Outlook
Silico manganese prices are expected to remain rangebound in the near term, supported by firm costs but limited by cautious buying and subdued demand growth.
(With inputs from CBC)
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