- Weak export demand weighs on market sentiment
- Limited supply underpins manganese ore prices
CBC: Chinese silico manganese (Mn:65%, Si:17%) prices remained largely stable, up slightly by RMB 40/tonne (t) ($6/t) w-o-w to RMB 5,700-5,970/t ($801-$839/t) exw, including taxes.
Silico manganese prices remained largely stable, underpinned by firm ore prices and tight supply, though high production costs continued to weigh on mill margins. Rebar prices experienced a slight correction, and weak export demand has kept overall market sentiment cautious.
Market updates:
Manganese ore prices hold firm: South African semi-carbonate ore prices remained firm as port inventories eased slightly. High coke prices, supported by costly coking coal, pressured alloy mill margins, while stable silica and semi-coke prices kept overall production costs elevated.
The manganese ore tender in Guangxi on 15 September was sold at a premium, highlighting expectations of tighter supply ahead, which could support silicon and manganese prices.
Steel market stabilizes despite margin pressure: The steel market steadied with a modest correction in rebar prices. Mill’s shrinking margins led to more pressure on alloy purchase prices, though crude steel controls kept production cuts limited and demand for silicon and manganese intact.
Export demand from Southeast Asia stayed weak, with no significant pickup in Chinese orders. Market focus is now on late-September tenders, where bids under RMB 6,000/t could impact sentiment.
Outlook
In the short term, silico manganese prices are expected to remain volatile. While firm ore prices and tight supply are likely to provide support, high production costs and weak export demand may cap any significant upside.
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