China: Silico manganese prices drop amid market downturn

CBC: Silico manganese prices in China further inched down w-o-w. Prices (Mn: 65%; Si: 17%) dropped by RMB 300/t ($42/t) to RMB 6,260- 6,650/t ($872-$926/t) ex-works, including taxes. Prices fell slightly this week, due to the overall downturn in the ferro alloy market

Factors behind the drop in prices

Current market downturn: The silico-manganese market is currently in a downturn due to the overall decline in the ferro alloys market. Prices are continuing to fall, while that of manganese ore remains high. This situation has led many smelters to be cautious about future production and reluctant to provide external quotes.

Outlook: Factory sentiment is weak, with traders remaining cautious about the silico manganese price outlook, and no short-term price improvement is expected.

The silico-manganese market is currently in a downturn, driven by a broader decline in the ferro alloy market, with prices falling while manganese ore remains costly. This has made smelters cautious about future production and hesitant to provide external quotes. However, as manganese ore inventories decrease, a slight price rebound in silico-manganese is possible.

In the long term, the expected negative feedback for silico-manganese could weaken manganese ore demand. Once silico-manganese production decreases, industry tensions may ease, shifting focus away from manganese ore trading. Market attention will also be on warehouse receipts and silico-manganese inventory changes. The price of silico-manganese alloys is likely to remain weak and volatile, with continued downward pressure.