China: Silico manganese prices continue to inch down on weak market atmosphere

CBC: Silico manganese prices in China further inched down w-o-w. Prices (Mn: 65%; Si: 17%) dropped by RMB 100/t ($14 /t) to RMB 6,160- 6,550/t ($862-$926/t) ex-works, including taxes. Prices declined marginally this week, influenced by the broader slump in the ferro alloy market.

Market driving factors:

Subdued sentiments in ferro alloy market: The downturn in the ferro alloy market has led to weaker-than-expected bidding, causing prices to decline continuously. Factory quotations showed a lack of enthusiasm, and many purchasing traders remain cautious about the market's future. However, manganese ore imports have dropped due to lower international supply and higher shipping costs. Low domestic inventories might support prices, helping to stabilise the cost of silico manganese.

Volatility in future market: In terms of downstream demand, futures remain volatile at the opening, contributing to ongoing weakness in silico manganese prices, which also declined on the Zhengzhou Commodity Exchange (ZCE). The market's bearish sentiment persists, and volatility continues to dominate the steel sector. As steel mills enter the off-season, their demand for silico manganese weakens, leading to reduced purchase volumes and difficulty closing deals at higher prices.

ZCE silico manganese prices dip w-o-w: Silico manganese prices on China's ZCE for January 2025 delivery decreased by RMB 148/t ($21/t) to RMB 6,350/t ($889/t) on 19 August against RMB 6,498/t ($909/t) on 12 August.

Outlook

Overall, the silico manganese market is in decline, characterised by falling prices and high manganese ore costs. Smelters remain cautious about future production and are hesitant to quote prices. A slight rebound in silico manganese prices is anticipated as ore inventory decreases.