China: Silico manganese prices inch down on poor market sentiments

CBC: Silico manganese prices continued its downtrend w-o-w. Prices (Mn: 65%; Si: 17%) dropped by RMB 140/tonne ($20/t) to RMB 6,020- 6,410/t ($845-$900/t) ex-works, including taxes. Prices declined amid weak market sentiment and sluggish transaction activity.

Some sellers did panic selling which led to lowering prices to move inventory. However, steel procurement remained uncertain, and with downstream customers hesitant to engage, overall transactions remained sluggish.

Wait-and-see approach surfaces in raw material market: Manganese ore prices were largely stable this week, with limited low-price sales. Market sentiment reflected a mixed scenario, with a stronger wait-and-see approach, leading to light overall transactions. In the short term, market consolidation is expected, with focus on manufacturers' purchasing, replenishment, and port destocking activities.

Decrease in downstream demand: Downstream demand remained sluggish as futures opened with continued fluctuations. The weakness in silicon manganese prices persisted, with declines observed in the Zhengzhou Commodity Exchange (ZCE). Market sentiment remained bearish, and volatility dominated the steel sector. Steel mills entered an off-season, leading to reduced enthusiasm for purchasing silico manganese and a gradual decrease in purchase volumes, making it difficult to secure high prices.

ZCE silico manganese prices inch down w-o-w: Silico manganese prices on China's ZCE for January 2025 delivery inched down by RMB 18/t ($3/t) to RMB 6,332/t ($889/t) on 26 August against RMB 6,350/t ($892/t) on 20 August.

Outlook

Silico manganese factories faced downward pressure from a weak market and declining steel demand. Prices are anticipated to remain low, with stock replenishment on demand.