- New energy sector provides limited support
- Steel demand shows divergent momentum
Silico manganese prices (Mn 65%, Si 17%) in China remained largely stable in the week ended 28 Nov, supported by steady raw material supply and cautious downstream buying. Prices averaged RMB 5595/t ex-works, including taxes, on Friday, down by RMB 10/t compared to the previous week. Mixed demand from the steel sector and margin pressure at alloy plants further limited any significant price movement.
Market updates
Raw material market trends
Supply of silicon manganese raw materials remained stable, with major mines in Guangxi and Guizhou largely unaffected by environmental checks, while small and medium miners reduced output due to cost pressures.
Buyers continued to purchase only to fulfil current demand. buying on need basis. While growing demand for high-purity manganese from the new energy sector offered some support, its short-term impact on overall supply remains limited.
Downstream market trends
Demand for silico manganese in the steel sector remained mixed. Construction steel demand softened due to seasonal factors, while high-end manufacturing steel stayed resilient, supporting buying interest for alloy grades.
Alloy manufacturers faced margin pressure from firm raw material costs and weak finished steel prices, prompting some to reduce costs by adjusting production ratios and limiting their acceptance of high-priced silicon manganese.
The rapid growth of the electric-vehicle industry has supported demand for special steel and offered potential growth for the silicon manganese market, although its overall impact on demand remains limited in the short term.
Outlook
Silico manganese prices are expected to remain range-bound in December, supported by stable supply and steady demand, though subdued construction steel demand and margin pressure on alloy producers may limit any upward movement.
(With inputs from CBC)
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