China: Silico manganese prices hold steady despite weak demand

CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices were unchanged w-o-w at RMB 6,030-6,430/t ($823-$877/t) exw, including taxes. The silico manganese market remained stable amid cautious sentiment, waning demand and limited quotations from factories.

Factors keeping prices stable

Manganese ore prices remain steady: The manganese ore market showed generally stable performance, with some transactions seen at lower prices. Market sentiment remained cautious, leading to a wait-and-see approach and lighter trading activity.

Despite these factors, the cost support for silico manganese remained intact. In the short term, the manganese ore market is expected to consolidate. Attention should be focused on manufacturers' purchasing and replenishment activities, as well as the ongoing destocking at ports, which may influence market dynamics and pricing trends.

Subdued downstream demand: Downstream demand remained weak in the short term, with futures prices likely to remain under pressure. Factories are reluctant to sell at lower prices, and industry participants have adopted a cautious approach. As this is the traditional off-season, alloy consumption remains low.

Additionally, power restrictions and peak production policies in Inner Mongolia and Ningxia continue to affect silico manganese output.

ZCE prices inch down: Silico manganese futures on China's Zhengzhou Commodity Exchange (ZCE) for May 2025 delivery saw a slight decline of RMB 34/t ($5/t) to settle at RMB 6,068/t ($828/t) on 6 January against RMB 6,102/t ($833/t) on 30 December.

Outlook

The silico manganese market is expected to remain weak in the short term, with modest steel mill demand and pricing adjustments. As manganese ore inventory gets gradually digested, market dynamics will depend on steel mill bidding and alloy demand trends.