- Manganese ore prices remain firm due to tight supply overseas
- Steel mills winter restocking supports silico manganese prices
Chinese silico manganese prices (Mn 65%, Si 17%) inched up by RMB 50/tonne (t) ($7/t) w-o-w to RMB 5,660-5,930/t ($809-848/t) exw, inclusive of taxes.
Silico manganese prices increased marginally due to firm costs and tight overseas supply of manganese ore. Stable steel demand and winter stocking offered demand support, keeping the market balanced.
Market recap
Raw material market trends
On the raw material side, manganese ore prices remained firm, while tight overseas supply — particularly delays in South African shipments — pushed up silico manganese production costs. Meanwhile, the domestic manganese-rich slag market remained stable, with limited availability supporting prices.
Producers’ profit margins were squeezed, strengthening their willingness to support prices. However, limited acceptance of higher prices resulted in a stalemate between rising raw material costs and silico manganese prices.
Downstream market trends
Downstream steel demand remained steady, with alloy purchases mainly driven by need-based demand, while gradual winter restocking helped underpin silico manganese prices. Steel mills remained cautious in their bidding, but stable end-user consumption supported overall market activity.
Producers continued to face margin pressure, leading to minor production adjustments; however, supply-demand fundamentals remained broadly balanced. Demand from the new energy sector showed steady growth, providing underlying support, though its short-term impact on prices remained limited.
Outlook
Silico manganese prices are expected to remain at around these levels in the next week, supported by firm input costs and steady steel demand, while cautious buying and limited price acceptance are likely to cap upside.
(With inputs from CBC)
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