- Coke prices stay firm on sentiment support
- Weak demand and inventory cap recovery outlook
Chinese silico manganese prices (Mn 65%, Si 17%) rose slightly w-o-w by RMB 50/t ($7/t) to RMB 5,680-6,020/t ($840-890/t) exw. Chinese silico manganese market stayed stable, while futures adjusted earlier sentiment-driven gains. After a brief early-week sentiment rise, conditions normalised, with limited spot price movement and a balanced regional spread. The market remained in a stalemate, with cautious, need-based buying.
Market updates
Raw material trends and costs support prices: Raw materials showed mixed trends amid uneven supply-demand conditions and rising pricing pressure across the value chain. Manganese ore remained weak and stable at ports, as high-cost inventory pressure and cautious downstream buying limited traders’ willingness to cut prices further, restricting any meaningful upside.
Meanwhile, coke prices stayed firm on sentiment support, although they continued to weigh on steel mill margins and reduced acceptance of higher input costs. Overall, cost support for silico manganese improved slightly but remained unstable and highly sensitive to downstream demand conditions.
Weak downstream demand limits upside: Downstream demand pressure remains unchanged despite steady steel mill output. Procurement transmission to alloys is weak, with mills continuing price suppression and expecting softer bids. Rising coke costs have squeezed margins, leading to stricter cost control on ferro alloys. Buyers remain on need-based procurement with low inventories, limiting acceptance of higher prices. Overall, weak demand restricts any sustained price recovery.
Outlook
Silico manganese prices are expected to remain range-bound amid cost support and weak demand. High inventories and low operating rates limit upside, keeping market sentiment weak and balanced.
(With inputs from CBC)
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