China: silico manganese prices remain consistent on cautious market outlook

Prices of silico manganese in China remained unaltered on watchful market sentiment. Prices were at around RMB 6,310/t to 6,410/t ($877/t-$891/t). All prices were ex-works and inclusive of taxes.

The silico manganese market in China has shown sign of stabilization this week, with a relatively average trading atmosphere. Following the conclusion of the spring Festival holiday, the market lacked clear guidance, and downstream inquiries and purchases have not yet picked up significantly.

The supply side of silico manganese also remained unchanged post-holidays, with stable supply in the north and challenges in production resumption in south. Overall market transaction activity remained subdued. However, there is optimism that as the market gradually recovers, the silico manganese market will see improvements in future.

The ongoing sentiment in the manganese ore market showed signs of price support, with acceptable market performance. The recent repair and full restoration of the railway track between the Gabon ports of Ovindo and Franceville is expected to facilitate smoother operations and contribute to a decline in port inventory. This, combined with external market support, may lead to a potential rebound in ore prices in the near future.

On the other hand, the futures market indicates poor sentiment, with cautious operating attitudes among industry players and average alloy transactions. Despite this, there are positive expectations for increased demand as steel recruitment progresses. Suppliers are optimistic about the market outlook.

In the short term, it is important to monitor low-price transactions in the market and changes in the supply and demand dynamics of silico manganese.

Outlook

The current market sentiment is characterized by a strong wait-and-see approach, with both buyers and sellers exercising caution.

The silicomanganese market is anticipated to remain stagnant in the short term. It's important to monitor these trends closely for any potential shifts.

Note: This article has been written in accordance with an agreement between CBC and SteelMint.