China: Silico manganese prices inch up w-o-w on firm raw material costs

• Rising freight and power costs lift production expenses
• Weak profitability limits steel mill procurement

Chinese silico manganese prices (Mn 65%, Si 17%) inched up w-o-w to RMB 165/t ($24/t) to RMB 5,910-6,210/t ($857-900/t) exw, inclusive of taxes, on 6 March 2026.

Silico manganese prices inched up over the week, supported by firm raw material costs and tight ore supply. Rising freight and electricity costs further increased production expenses, while steel mills maintained cautious, need-based buying amid weak profitability, keeping demand subdued.

Market updates

Raw material market trends

Raw material costs continued to support strong silico manganese prices. Manganese ore supply remained tight due to rising electricity costs and railway capacity constraints in South Africa, the world’s key producing region, keeping spot prices at domestic ports elevated.

Meanwhile, geopolitical tensions pushed up sea freight rates, further increasing the landed cost of imported manganese ore. Additionally, higher electricity costs in some southern production regions raised overall production expenses for silico manganese producers, forcing some plants to operate at lower rates due to losses.

End-user market trends

Steel mills, the main consumers of silico manganese, maintained a cautious procurement approach due to weak profitability. Although production restrictions at northern mills were expected to ease after the conclusion of China’s Two Sessions, which could support a recovery in molten iron output, mills largely continued purchasing on a need basis. As a result, their acceptance of higher silico manganese prices remained limited.

Although some steel mills initiated tenders, price negotiations remained firm, and the market reflected a tight balance between high costs and weak demand.

Outlook

Silico manganese prices are expected to remain range-bound in the short term, as strong raw material costs will likely provide support while cautious steel mill demand will cap significant price gains.

(With inputs from CBC)