China: Silico manganese prices decline by $28/t w-o-w on weak market sentiments

CBC: Silico manganese prices in China diminished w-o-w. Prices (Mn: 65%; Si: 17%) declined by RMB 200/t ($28/t) to RMB 6,410- 6,800/t ($898-$953/t) ex-works, including taxes. Prices took a downturn amid weakening market sentiment and a softening futures market.

Market driving factors were:

Raw material market holds steady amid uncertainty: The manganese ore market experienced subdued activity, characterised by some low-price sales. Mixed market sentiments and a cautious, wait-and-see approach led to minimum transactions overall. In the near term, market consolidation is anticipated, with attention on manufacturers' purchasing patterns, replenishment activities, and port destocking efforts.

Vigilant downstream market: The overall sentiment for futures has been weak, with the market adopting a wait-and-see attitude. However, downstream steel bidding has commenced, boosting transaction volumes and market activity. In the short term, purchasing demand from downstream steel mills needs to be monitored closely.

ZCE silico manganese prices drop w-o-w: Silico manganese prices on China's Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery declined by RMB 180/t ($25/t) to RMB 6,772/t ($949/t) on 5 August against RMB 6,952/t ($974/t) on 28 July.

Outlook

The silico manganese market downturn continues with falling prices and stable manganese ore costs. Smelters remain cautious about future production and reluctant to quote. As manganese ore inventory depletes, a slight rebound in silico manganese prices is anticipated.

Note: This article has been written in accordance with an agreement between CBC and BigMint.