China: Silico manganese prices remain largely stable w-o-w amid cautious market sentiments

• ZCE futures erode by RMB 178/t
  
  
• Manganese ore tags remain flat
  
  

CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices were mostly stable w-o-w, with a slight decline of RMB 60/tonne (t) ($8/t) to RMB 6,140-6,540/t ($844-$898/t) exw, including taxes. Although steel mills started bidding for silico manganese, overall demand was weak and caution prevailed, leading to limited purchasing activity and subdued market conditions.

Meanwhile, the manganese ore market stayed quiet, with stable pricing and production.

Factors driving prices

Manganese ore prices remain flat: The manganese ore market showed steady performance, with some low-priced sales observed. Overall, prices remained stable, though sentiment was mixed, and trading activity was light. In the short term, the market is expected to hold steady, based on manufacturers' purchasing and replenishment strategies, as well as port destocking trends.

Poor downstream demand: As the traditional off-season persists, alloy consumption remained low. Additionally, power restrictions and peak production policies in Inner Mongolia and Ningxia continued to significantly impact silico manganese output. Factories were reluctant to sell at low prices, and industry players adopted a cautious approach.

In the short term, downstream demand will remain weak, with futures likely to follow a downward trend.

ZCE prices erode: Silico manganese futures on China's Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery declined by RMB 178/t ($24/t) to RMB 6,222/t ($855/t) on 9 December against RMB 6,400/t ($879/t) on 2 December.

Outlook

In the coming days, the silico manganese market will likely experience stability despite price fluctuations. The weak manganese ore market and subdued downstream activity, coupled with need-based buying, are expected to influence dynamics moving forward.