- High ore prices offer cost support despite expectations of price correction
- Falling rebar output amid seasonal construction slowdown reduces demand
Chinese silico manganese prices (Mn 65%, Si 17%) remained flat w-o-w at RMB 5,680-6,020/t ($840-890/t) exw in the week ended 8 June 2026. Market activity was steady, but weak futures trading dampened spot market sentiment. Manufacturers reduced quotations, and prices moved lower. Downstream buyers remained cautious, making limited purchases and seeking lower prices. Overall sentiment stayed bearish, with weak demand continuing to pressure prices despite cost support.
Market updates
Raw material stability fails to support margins: The manganese ore market remained weak but stable, with high-cost port inventories continuing to provide a floor for prices. However, expectations of lower overseas quotations have weakened long-term support. Coke and power costs showed little change, but falling silico manganese prices squeezed producer margins, leaving some southern manufacturers close to operating at a loss.
Weak steel demand limits silico manganese consumption: The downstream steel market remains sluggish, with finished steel prices fluctuating and steel mill profitability showing little improvement. Seasonal weakness in construction steel demand has led to lower rebar output, reducing silico manganese consumption. Steel mills continue to control procurement volumes and seek lower prices, delaying restocking plans. As a result, demand remains weak and lacks the momentum needed to support market recovery.
Outlook
The silico manganese market is expected to fluctuate within a narrow range. Weak demand and lower tender price expectations may limit any rebound, while production costs and high-priced manganese ore inventories are likely to prevent sharp price declines. Market participants will closely watch the next round of steel mill tenders for direction.
(With inputs from CBC)
Leave a Reply