China: Silico manganese prices remain steady w-o-w on tight ore supply

• Electricity rate hikes support SiMn prices
• ZCE futures inch up by RMB 32/t ($5/t) w-o-w

CBC: Chinese silico manganese (Mn:65%, Si:17%) prices remained mostly stable, with a marginal decline of RMB 10/tonne (t) ($1/t) w-o-w to RMB 5,440-5,710/t ($758-$796/t) exw, including taxes.

The silico manganese market was steady w-o-w, supported by stable manganese ore prices, stemming from supply constraints. Electricity rate hikes in key regions also pushed up production costs, and flexible production in the south signalled supply tightening. Meanwhile, steel mills remained cautious in procurement, though other sectors provided a demand boost.

Market recap

Raw material prices show mixed trends: Overall, raw materials showed a mixed trend – strong manganese ore contrasted with weaker auxiliary materials.

While silica supply remained ample, strikes at non-Transnet ports in South Africa delayed mainstream manganese ore arrivals, causing Tianjin Hong Kong and Macao block prices to rebound, though tags in other regions remained stable. Coke prices also stabilised after the third round of adjustments, and rising summer electricity costs in Ningxia raised local production expenses.

These factors lent support to Chinese silico manganese prices.

Wind power spurs niche growth: Construction steel demand weakened, and major steel mills kept procurement low to maintain lean inventories. However, rising orders in sub-sectors such as wind power boosted demand for high-grade silicon manganese.

Southeast Asian steel mills resumed procurement, though FOB prices stayed below domestic levels. Traders favoured small-batch restocking to manage risks.

ZCE futures edge up: Silico manganese futures on China’s Zhengzhou Commodity Exchange (ZCE) for September 2025 deliveries rose by RMB 32/t ($5/t) w-o-w to RMB 5,642/t ($787/t) on 30 June compared to RMB 5,610/t ($782/t) on 23 June.

Outlook

Seasonal steel demand may support prices in the short term. Close monitoring of energy reforms and mill procurement is key. In the long term, risks remain as new manganese alloy capacity enters the market.