Market holds firm despite demand slump
ZCE futures decline by RMB 22/t ($3/t) w-o-w
CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices edged up by RMB 50/t ($7/t) w-o-w to RMB 5,680-5,950/t ($787-$825/t) exw, including taxes.
Silico manganese prices remained stable due to weak demand from steelmakers and ongoing price cuts. Although futures have slightly recovered and macroeconomic factors provide some support, the market outlook remains cautious with few signs of a near-term rebound.
Market recap:
Steel mills adjust prices in soft market: Silico manganese futures have rebounded slightly, offering a mild boost to market confidence. However, aggressive bidding and persistent price reduction efforts by steel mills continue, with supply in northern regions remaining relatively high.
Downstream steel procurement remains tepid, with steel mills maintaining a strong inclination toward price cuts. While the recent China-US economic and trade statement from Geneva has helped lift macro-level confidence, a tangible recovery in demand is yet to be seen.
Manganese ore spot transactions ease: The manganese ore market has begun to stabilise, with some minerals showing a slight upward trend. Early-stage low-priced transactions are tapering off, and spot market activity at lower prices has declined.
Significant cost losses at port arrivals have led some traders to raise their offers. However, downstream silico manganese producers continue to face margin pressure, limiting the extent of any price increases in manganese ore.
Downstream demand remains weak: The market is in the traditional off-season with low alloy volumes, while ongoing power rationing and off-peak production in Inner Mongolia and Ningxia continue to significantly impact silico manganese output.
Additionally, factories are reluctant to sell at high prices amid sluggish demand. Futures are expected to stay weak in the short term, with industry insiders maintaining a cautious stance.
ZCE futures remain stable: Silico manganese futures on China’s Zhengzhou Commodity Exchange (ZCE) for July 2025 deliveries edged down by RMB 22/t ($3/t) w-o-w to RMB 5,844/t ($811/t) on 19 May compared to RMB 5,866/t ($814/t) on 12 April.
Outlook: The silico manganese market is likely to remain volatile in the short term, supported by supply-side production cuts and a recovery in manganese ore prices. However, subdued demand and persistent cost pressures are expected to constrain significant price increases.
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