China: Silico manganese prices edge up on increasing raw material prices
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The silico manganese market in China witnessed an uptrend this week amid hike in raw material prices. Spot prices of silico manganese (60-14) surged by RMB 800/t ($110/t), hovering within RMB 6,700/t - 6,900/t ($925/t-$953/t) ex-works and inclusive of taxes.
Factors impacting market
Imported manganese ore prices soar: The manganese ore import market appeared to be favourable, with prices trending upward. This trend has contributed to supporting silicon manganese costs.
Considering these factors, along with support from the external market, there is a possibility that ore prices may rebound further in the near term. This indicates a potentially positive outlook for the manganese ore market.
Improved trading activities: The silico manganese market in China is experiencing positive movements, with increased trading activities. The price of manganese ore and coke were on the rise, leading to higher smelting costs for silico manganese producers.
As a result, manufacturers were motivated to support prices, leading to a rise in quotations and actual transactions.
Recovering downstream market: The downstream demand in the futures market is gradually recovering from previous shocks, leading to an improvement in the operating sentiment among industry players.
Moreover, with ongoing steel production, there's optimism regarding increased demand in the future. This positive outlook is shared by suppliers, who are optimistic about the upcoming market trajectory.
Outlook
China's silico manganese market exhibits a wait-and-see approach, with both buyers and sellers maintaining a cautious outlook. However, positive signs emerge in the raw material segment, where manganese ore prices have begun to improve. Downstream acceptance, however, requires further strengthening.
As the market regains momentum, a rebound in subsequent alloy prices is anticipated. This paints a cautiously optimistic picture for the near future, with potential for further improvement as market dynamics evolve.
Note: This article has been written in accordance with an agreement between CBC and BigMint.
