- Low production keeps supply pressure limited
- Higher mill tender prices support market sentiment
Chinese silico manganese prices remained unchanged w-o-w, with the Mn 65%, Si 17% grade at RMB 5,560-5,830/t ($828-869/t) exw and Mn 60%, Si 14% prices at RMB 5,320-5,440/t ($793-811/t).
Market updates
Low output limits supply pressure: Silico manganese prices remained stable as firmer futures prices supported spot market sentiment. Producers showed greater willingness to hold prices, while low-priced material became less available. Operating rates in major producing areas remained low, and although some plants resumed production, the increase in output was limited.
Steel mill buying remains steady: Steel mills continued to purchase according to immediate needs, with overall trading activity remaining acceptable. Tender prices this month have increased from the previous month, providing some support to market sentiment. However, buyers remain cautious and are not actively chasing higher prices as steel demand moves towards the peak season.
Raw material
Manganese ore prices remained firm as miners continued to support prices and low-priced material was scarce. Coking coal was stable to slightly stronger, while chemical coke prices increased somewhat. Although electricity costs were broadly stable, high power prices in northern producing areas kept production costs elevated and continued to pressure producer margins.
Outlook
Silico manganese prices are expected to show a slight upward bias in the near term. Firm raw material costs and limited production growth should support prices, but high inventories and selling pressure after price increases are likely to limit the upside.
Leave a Reply