China: Silico manganese prices inch down w-o-w in down-trending ferro alloys market
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CBC: Silico manganese prices in China inched down w-o-w. Prices (Mn: 65%; Si: 17%) declined by RMB 100/t ($14/t) to RMB 6,610- 7,000/t ($911-$964/t) ex-works, including taxes. A weak ferro alloy market drove down silicon manganese prices.
Factors that impacted the market
Correction in manganese ore prices: Manganese ore prices had slightly adjusted downward due to a weak downstream market. There have been no major changes in mining activities. The domestic market for high-grade manganese ore showed no significant shifts in supply and demand, with port spot orders heavily backlogged.
However, positive factors on the raw material side persist, ensuring that high manganese ore prices may continue to support prices of manganese alloys in the near future.
Dull downstream demand: Downstream demand remained weak, with the futures market experiencing a downturn. Factories were hesitant in providing quotes, and industry insiders were cautious.
Market players cautious: Several factories expressed intentions to reduce production due to low silico manganese prices, but noticeable cuts are not yet evident. Some production reductions have been reported, with specific decreases in silico manganese 60-14 grade starting in mid-July, and silico manganese 65-17 reductions largely attributed to factory overhauls and routine maintenance.
ZCE silico manganese prices drop w-o-w: Silico manganese prices on China's Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery declined by RMB 306/t ($42/t) to RMB 6,952/t ($958/t) on 29 July against RMB 7,258/t ($1,000/t) on 22 July.
Outlook
The silico manganese market may remain down due to the overall downtrend in the ferro alloys market, characterised by falling prices and persistent volatility in manganese ore prices. Smelters are cautious about production and hesitant to quote offers. A slight price rebound may occur as manganese ore inventory depletes.
Note: This article has been written in accordance with an agreement between CBC and BigMint.
