- Soft raw material prices curtail price support
- Steel mills continue with on-demand purchases
CBC: Chinese silico manganese (Mn:65%, Si:17%) prices went up by RMB 200/t ($28/t) w-o-w to RMB 5,970-6,240/t ($828-$865/t) exw, including taxes.
The silico manganese market remained stable but cautious. The extension of the EU Battery Regulation eased short-term export pressure, while China’s dual carbon policy continued to weigh on traditional demand. Additionally, falling coke prices and weak manganese ore support kept margins low. Market sentiment stayed cautious, and conservative trading limited liquidity.
Market recap
High Mn ore inventories weigh on cost support: The manganese ore market remained weak. Although port offers remained stable, actual transactions were limited. While international mine supply tensions persisted, high port inventories have eroded cost support.
Falling coke prices and electricity prices in some production regions further reduced production costs. Additionally, continued price cuts by global suppliers reinforced expectations of weaker forward costs, prompting some companies to increase raw material stockpiles in expectation of market fluctuations.
Rebar cuts hit alloy buying: Steel demand stayed subdued amid a prolonged off-season in construction steel. The sharp fall in rebar production further suppressed demand for alloy procurement. Steel mills maintained a need-driven purchasing, as the latest bid prices trended lower than before, reflecting ongoing bearish price sentiment
The growth in new energy demand has not effectively translated into the silico manganese markets, leaving the overall demand outlook lackluster. Cautious trading activity has intensified the market stalemate, while the narrowing spread between futures and spot prices indicates sustained pressure on the physical market.
Outlook
Amid easing coke and electricity costs, weak demand, and high stock levels, silico manganese prices may remain range-bound in the near term.
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