- Southern production cuts support mainstream grade prices
- Weak steel demand and falling coke prices pressure high-silicon grades
Chinese silico manganese prices remained stable w-o-w, with the Mn 65%, Si 17% grade at RMB 5,650-5,950/t ($844-889/t) exw and the Mn 60%, Si 14% grade at RMB 5,300-5,420/t ($792-810/t).
Market updates
Raw material costs weakened support: Chemical coke prices had fallen in two rounds, with further reductions expected, lowering cost support for silico manganese. Manganese ore inventories at Tianjin Port had risen above 5 mnt, while weak buying from alloy producers limited price gains. Firm international ore prices and high import costs, however, provided some support.
Steel demand remained weak: Poor steel mill profitability had reduced demand for high-silicon silico manganese, with a tender by Shanxi Xintai Steel attracting only slightly over 100 tonnes. October steel tenders had brought some activity, but mills continued to buy mainly for immediate needs. Southern production cuts supported ordinary silico manganese prices, while stable northern output and weak demand limited further movement.
Outlook
Silico manganese prices are expected to remain range-bound, with southern production cuts offering support while weak steel demand and falling coke prices limit gains.
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