China: Silico manganese prices inch down w-o-w amid cautious market moves

CBC: Silico manganese prices in China remained largely stable this week, experiencing only a marginal drop due to the sluggish demand in the ferro alloys market. Prices (Mn: 65%; Si: 17%) inched down by RMB 80/t ($7/t) to RMB 5,860-6,230/t ($830-$883/t) exw, including taxes, amid lower-than-expected bidding activity by steel mills and weak factory sentiment.

Many purchasing traders exercised caution due to uncertainty about the future market trends for silico manganese.

Manganese ore prices remain stable: Although the prices of manganese ore have seen slight adjustments due to weak downstream demand, there has been no significant shift in output at the mining level. The domestic high-grade manganese ore market continues to face a supply-demand imbalance, with port spot orders experiencing serious delays. Market fundamentals remain stable despite minor fluctuations.

Sluggish downstream demand persists: Downstream demand remains weak, with the futures market in decline and factories hesitant to provide quotes. Industry participants are exercising caution in their operations. Although several factories are considering production cuts due to low silico manganese prices, these reductions have not yet become apparent. Some producers of silico manganese 60-14 started cutting production in mid-July, while reductions in 65-17 supply have mainly resulted from scheduled overhauls and routine maintenance at certain facilities.

ZCE silico manganese prices edge down: Silico manganese futures on China's Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery inched down by RMB 60/t ($9/t) to RMB 6,038/t ($856/t) on 20 September against RMB 6,098/t ($864/t) on 13 September.

Outlook

Given the current conditions, it is unlikely that silico manganese prices will see any significant improvement in the short term. The market outlook remains bearish.