China: Silico manganese prices inch down w-o-w despite firm raw material costs

• Lack of large-scale restocking keeps sentiment subdued
• Tight supply, higher bids from HBIS fail to lift spot prices

Chinese silico manganese prices (Mn 65%, Si 17%) edged down by RMB 50/t ($7/t) w-o-w to RMB 5,650-5,920/t ($812-851/t) ex-works, inclusive of taxes. Overall, prices remained largely stable, supported by firm raw material costs, though weak demand and cautious downstream procurement limited upside potential.

Market updates

Raw material market sentiments

The silico manganese raw material market remained firm, supported by elevated manganese ore prices. At ports, traders quotations stayed stable, while transaction prices remained range-bound. The manganese-rich slag market also remained strong, as producers raised price expectations and quotations edged up across regions.

Manganese ore prices at Tianjin and Qinzhou ports fluctuated, while weakness in the futures market weighed on procurement prices from silico manganese producers, leading to subdued spot trading. Overall, strong raw material costs continued to support silico manganese prices; however, weak demand constrained price transmission.

End-user market sentiments

Downstream demand remained stable, with major buyers such as HBIS Group increasing silico manganese procurement and prices edging up, indicating a modest recovery in end-user demand. However, overall market sentiment remained subdued, and downstream procurement stayed cautious, with no large-scale restocking observed.

Alloy producers in southern regions continued to operate at low utilisation rates, with some shifting production to other alloys. This reduced the number of dedicated silico manganese producers; however, the contraction in supply was largely offset by only modest demand recovery, resulting in limited support for prices.

Outlook

Silico manganese prices are expected to remain at around current levels in the near term, with cautious demand and moderate supply recovery shaping market trends, while high input costs provide underlying support.

(With inputs from CBC)