Lower electricity tariffs in rainy season support prices
Overall demand weak amid lower crude steel output
CBC: Chinese silico manganese (Mn:65%, Si:17%) prices inched up marginally by RMB 70/t ($10/t) w-o-w to RMB 5,450-5,720/t ($758-$796/t) exw, including taxes.
Silico manganese prices edged up as supply improved with production resuming in Yunnan, supported by lower electricity costs during the wet season, while some northern plants remained under maintenance. Steel mills increased procurement, but overall demand remained weak due to a y-o-y decline in crude steel output. Soft manganese ore prices and weak semi-carbonate trades at Tianjin Port continued to limit cost support.
Market recap
Rising imports from Gabon: The manganese ore market continues to face a loose supply-demand balance. Overseas shipments are gradually picking up, and increased arrivals from Gabon have added pressure on port inventories. However, miners are reluctant to cut prices further due to widespread losses, keeping mainstream ore offers at Tianjin Port range-bound.
Power cost relief in the south: Lower seasonal electricity rates in southern China and a third round of coke price cuts have slightly improved silico manganese margins. Meanwhile, Element25’s (producer of manganese concentrates) potential production restart in Australia may ease global ore supply constraints and pressure ore prices.
Modest uptick in steel demand: Steel demand improved slightly, but overall volumes remained low. In June, silico manganese purchase prices dropped compared to the previous month, though bidding volumes increased slightly. Acceptance of payment terms eased financial pressure on producers, while transport issues in the south led some steel mills to shift to spot purchases, supporting short-term market activity.
Export demand continued to decline, with India’s anti-dumping measures reducing the global competitiveness of Chinese silico manganese. Social inventory destocking has been slower than expected, reflecting a limited recovery in end-user demand.
ZCE futures remain stable: Silico manganese futures on China’s Zhengzhou Commodity Exchange (ZCE) for September 2025 deliveries stayed stable, rising slightly by RMB 26/t ($4/t) w-o-w to RMB 5,610/t ($780/t) on 23 June compared to RMB 5,584/t ($777/t) on 16 June.
Outlook
In the near term, silico manganese prices are expected to remain range-bound. While lower power costs and improved margins in the south may offer some support, rising supply and soft steel demand, both domestic and export, are likely to limit any significant price gains.
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