China: Silico manganese prices edge down on reduced steel demand, liquidity pressures

• Mn ore market holds steady
  
  
• SiMn prices on ZCE decline
  
  

CBC: The Chinese silico manganese market inched down amid slow market movements following the Golden Week holidays. Prices (Mn: 65%; Si: 17%) inched down by RMB 90/t ($13/t) to RMB 6,100-6,500/t ($861-$917/t) exw, including taxes.

The slight decline in silico manganese was driven by weak steel market sentiments and the continuing downturn in the futures market. Additionally, some silico manganese holders were under pressure to recover funds, which prompted them to sell at lower prices.

Factors driving the market

Stable manganese ore market: The manganese ore market showed stability, with some instances of low-priced sales. Overall sentiments were sturdy, with lighter transactions providing continued cost support for silico manganese. However, Eramet Comilog, a leading manganese ore exporter from Gabon, announced a price cut for November 2024 shipments. Prices of 44.5% Mn Gabonese lumps decreased by $1.05/dmtu m-o-m to $3.95/dmtu CIF China. Similarly, prices of 43% Mn Gabonese chips fell significantly by $1.05/dmtu m-o-m to $3.75/dmtu CIF China.

In the short term, manufacturers' purchasing activities and port destocking are expected to strengthen. These factors will be crucial for future market developments.

Weakness persists in downstream market: Downstream demand remained weak, as the futures market experienced fluctuations. Prices of silico manganese continued to decline amid bearish sentiments in the market.

Steel mills are entering the off-season, which has led to reduced enthusiasm for purchasing silico manganese. As a result, purchase volumes are expected to decline, making it challenging to achieve high closing prices.

ZCE silico manganese prices decline: Silico manganese futures on China's Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery moved down by RMB 292/t ($41/t) to RMB 6,366/t ($899/t) on 11 October against RMB 6,658 /t ($940/t) on 30 September.

Outlook

The outlook for the silico manganese market remains challenging, with weak market sentiments and sluggish upstream transactions. Prices may witness near-term fluctuations as downstream demand enters the traditional off-season. Inventory pressures have also been mounting, which has prompted some factories to consider reducing or halting production to manage costs.