- Weak downstream demand prompts cautious buying
- SiMn ZCE futures (May’25) drop by RMB 26/t w-o-w
CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices were largely stable w-o-w, with a slight decline of RMB 50/t ($6/t) observed. Prices settled at RMB 5,830-6,100/t ($799-$836/t) exw, including taxes.
The silico manganese market operated with relative stability, but trading activity was subdued, reflecting cautious sentiment among market participants. Steel mills, in particular, were reluctant to make purchases, adopting a wait-and-watch approach.
Market updates
Steel mills stay cautious: Uncertainty over current silico manganese prices and concerns about supply stability led steel producers to delay buying decisions. Many mills held off on procurement, which contributed to lower market liquidity and overall bearish sentiment.
Trader sentiment remains bearish: Traders showed limited interest in shipments, with most adopting a conservative strategy. There was little enthusiasm to move inventory, further dampening market activity. This cautious stance signals continued concern about near-term price movements and weak downstream demand.
Raw material market remains stable: Manganese ore prices remained stable, though some low-priced sales were observed. A mixed sentiment prevailed in the market, with light transactions and increased wait-and-see behaviour. However, cost support for silicon manganese alloy remained intact.
Downstream demand weakens: Downstream demand continued to face seasonal challenges. With the market having entered a traditional off-season, alloy consumption was significantly sluggish. Futures remained weak, and most factories were hesitant to accept higher prices.
Production constraints add pressure: In regions such as Inner Mongolia and Ningxia, ongoing power restrictions and peak production control policies limited output. These factors compounded concerns over supply and contributed to a pessimistic outlook for the silico manganese market.
ZCE futures inch down: Silico manganese futures on China’s Zhengzhou Commodity Exchange (ZCE) for May 2025 deliveries dropped by RMB 26/t ($4/t) to RMB 5,920/t ($811/t) on 21 April against RMB 5,946/t ($815/t) on 14 April.
Outlook
The silico manganese market is likely to remain range-bound in the near term, with subdued demand offset by potential supply disruptions and export controls, which may support a modest price recovery.
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