- Mainstream grades rise RMB 100/t w-o-w
- Weak steel demand limits further gains
Chinese silico manganese prices increased w-o-w, with the Mn 65%, Si 17% grade at RMB 5,520-5,780/t ($821-860/t) exw and Mn 60%, Si 14% prices at RMB 5,280-5,400/t ($785-803/t). Both grades rose by RMB 100/t from the previous week.
Market updates
Higher raw material costs support prices: Manganese ore prices at ports increased slightly as miners became less willing to sell at lower prices. Chemical coke prices also rose in some regions, while relatively firm electricity prices added to production costs. Although producer margins have improved slightly, overall operating rates remain low, reducing the availability of low-priced material.
Cautious steel mill buying limits demand: Steel mills are mainly purchasing for immediate requirements, while new tender prices remain lower than the previous round. Weak steel demand and declining pig iron output continue to weigh on silico manganese consumption, keeping spot trading activity limited.
Outlook
Silico manganese prices are likely to remain stable to slightly firm in the near term, as higher raw material costs and limited low-priced supply provide support. However, weak steel demand and high manganese ore inventories are likely to limit further gains.
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