China: Silico manganese prices remain stable w-o-w as firm cost support offsets weak steel demand

• Smelters maintain firm offers amid contracting margins
• Mills’ lower tender prices in Jul’26 pressure market sentiment

Chinese silico manganese prices remained stable w-o-w on 27 July 2026, with the Mn 65%, Si 17% grade at RMB 5,570-5,830/t ($823-861/t) exw and the Mn 60%, Si 14% variant at RMB 5,310-5,430/t ($784-802/t) in the week ended 27 July 2026.

The silico manganese market in China held steady across mainstream grades as smelters, facing persistent losses, maintained firm offers and resisted low-priced sales amid balanced supply-demand. Raw material costs, including manganese ore and metallurgical coke, were largely steady, providing cost support, while steel mills continued need-based procurement, keeping overall trading activity subdued.

Market updates

Raw material costs remain firm despite elevated ore inventories: Raw material costs remained largely stable, with steady overseas manganese ore arrivals and rising Chinese port inventories amid balanced metallurgical coke fundamentals and unchanged power tariffs. While stable input costs continued to provide a floor for silico manganese prices, abundant ore supply prevented any meaningful cost-driven upside, leaving grade-specific supply-demand dynamics to dictate price movements.

Cautious steel mill buying keeps demand subdued: Downstream demand for silico manganese remained subdued as steel mills continued to adopt a cautious procurement strategy, following lower July tender prices that weakened market sentiment. Rising maintenance shutdowns and production cuts at steel mills, coupled with declining pig iron output, reduced alloy consumption. Weak demand from the construction steel sector further limited buying activity, with mills largely replenishing stocks on a need-based basis rather than undertaking large-volume purchases.

Although demand is expected to improve gradually with the arrival of the traditional peak steel consumption season towards the end of the third quarter, near-term support for the silico manganese market remains limited.

Outlook

China’s mainstream silico manganese prices are expected to remain broadly stable, supported by steady production costs despite weak seasonal steel demand. Meanwhile, ample supply and subdued consumption are likely to cap any significant upside, with demand expected to recover only gradually as steel activity picks up toward the fourth quarter.

With inputs from CBC