- Primary grades gain RMB 50/t ($7/t) w-o-w
- Steel mill inquiries improve
Chinese silico manganese (Mn:65%, Si:17%) prices rose marginally RMB 50/t ($7/t) w-o-w to RMB 5,470-5,730/t ($812-850/t). Silico manganese (Mn:60%, Si:14%) also went up by RMB 50/t ($7/t) w-o-w to RMB 5,230-5,350/t ($776-793/t), while silico manganese (Mn:60%, Si:28%) remained stable at RMB 6,900-7,120/t ($1,024-1,056/t).
The market showed a firmer tone as limited supply, higher production costs and some improvement in steel mill buying supported mainstream grades. Some producers in major production areas continued to operate at reduced rates due to weak margins, while raw material costs remained firm. Steel mills maintained regular purchases and inquiries increased slightly, although large-scale restocking was yet to begin.
Market updates
Firm raw material costs keep a floor under alloy prices: Manganese ore supplies at ports remained adequate, but smelters continued to buy mainly as needed. Imported ore costs provided support, while prices of coking coal, silica and other production inputs changed only slightly. Stable production costs reduced the scope for producers to lower alloy prices, supporting the recent rise in mainstream grades.
Slight improvement in steel mill demand: Steel mills maintained normal production and continued with their monthly procurement plans, with some buyers showing greater interest in spot material. This helped improve transactions for mainstream grades. However, end-user steel demand remains in the off-season, and mills are still keeping inventories low and buying mainly as needed. Demand for silico manganese also remained steady, keeping its price unchanged.
Outlook
Silico manganese prices are likely to stay firm but volatile in the short term. Production costs may limit downside, while production resumptions and steel mill buying will drive direction. Market participants will closely watch raw material costs, operating rates and steel mill tenders.
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