- High raw material costs support prices
- Weak downstream demand weighs on market
Chinese silico manganese prices (Mn 65%, Si 17%) remained largely stable, edging up slightly by RMB 20/t ($3/t) w-o-w to RMB 5,720-5,990/t ($824-863/t) exw, inclusive of taxes.
Silico manganese prices remained largely stable during the week, supported by high manganese ore prices and steady coke costs. However, weak downstream demand and cautious procurement by steel mills capped further price gains.
Raw material sentiments
Raw material costs provided strong support to silico manganese prices. Port manganese ore transaction prices remained elevated. while coke prices were expected to stay stable, keeping production costs high and maintaining pressure on producers.
Although actual transaction activity was slow, alloy producers were reluctant to offer material at lower prices due to cost pressures. As a result, high input costs remained the key factor supporting prevailing market prices.
End-user market sentiments
Downstream demand offered limited support to the silico manganese market. Steel mills, the primary consumers, mainly pursued lower-priced procurement strategies. Although fresh rounds of mill tenders were initiated, lending some sentiment support, pre-holiday stocking ahead of the Spring Festival had largely concluded.
Meanwhile, weaker end-user consumption kept market inventories elevated. The continued imbalance between supply and demand remained the key factor exerting pressure on spot prices during the week.
Outlook
In the near term, silico manganese prices are expected to remain range-bound, supported by firm raw material costs. However, weak downstream demand and high inventories may continue to limit any significant upside.
(With inputs from CBC)
Leave a Reply