- Producers limit offers, focus on observing trends
- Output levels yet to normalise amid weak demand
CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices were largely steady w-o-w, with a slight decline of RMB 55/t ($8/t) to RMB 6,030-6,420/t ($832-$885/t) exw, including taxes. Market participants exhibited cautious sentiment, which ultimately led to minimal market movements.
Market updates
Prices hold firm in cautious market: The silico manganese market was stable w-o-w, with minimal offers from smelters, as manufacturers focused on observing trends in upstream and downstream markets. While demand was weak overall, some manufacturers are yet to resume production after the holiday season. The market is in a holding pattern, with prices relatively steady in the recent past while participants await more clarity on future developments, especially with regard to steel mill bidding and production activity.
Manganese ore market stays firm: The manganese ore market also remained steady, and no significant fluctuations are expected in the short term. While sales occasionally took place at lower prices, the overall market was stable, and the transaction volume was moderate.
The cost of silico manganese continued to be supported by stable raw material prices. However, there was a growing wait-and-watch atmosphere, especially regarding the replenishment and procurement of manufacturers and the destocking of ports.
Downstream demand remains soft: Downstream demand for silico manganese was weak, especially given that this is the traditional off-season. Restrictions on power consumption in regions such as Inner Mongolia and Ningxia further limited production capabilities, dampening expectations for an immediate rebound in demand. Consequently, market sentiment was pessimistic, with many industry insiders predicting a continued downturn in the short term.
ZCE futures prices decline: Silico manganese futures on China’s Zhengzhou Commodity Exchange (ZCE) for May 2025 delivery declined by RMB 40/t ($6/t) to RMB 6,398/t ($882/t) on 17 February against RMB 6,438/t ($888/t) on 10 February 2025.
Outlook
The silico manganese market is likely to remain stable in the short term amid weak demand and cautious sentiment. Participants will continue to watch out for developments in steel mill bidding and inventory.
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