China: Silico manganese prices remain rangebound w-o-w amid vigilant market activity

CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices were largely stable w-o-w, with a slight rise of RMB 50/t ($7/t) to RMB 6,190-6,590/t ($850-$905/t) exw, including taxes. The silico manganese market experienced stability, with a cautious and wait-and-see sentiment prevailing.

Factors driving prices

Manganese ore prices remain steady: The manganese ore market showed steady performance, with some low-price sales observed. Overall, the market price remained stable, but the atmosphere was cautious, reflecting mixed market sentiment and light transaction volumes.

Despite this, the cost support for silico manganese alloy remained intact. In the short term, the manganese ore market is expected to consolidate, with attention focusing on manufacturers' procurement activities, replenishment strategies, and port inventory levels.

Subdued downstream demand: Downstream demand remained weak in the short term, with futures expected to stay subdued. Factories were hesitant to sell at lower prices, and industry participants adopted a cautious approach. The market is currently in the traditional off-season, with lower alloy consumption.

Additionally, power restrictions and peak production policies in Inner Mongolia and Ningxia continue to affect silico manganese alloy output. As a result, there is a prevailing pessimistic outlook for the future trend of silico manganese in the market.

ZCE prices remain range-bound: Silico manganese futures on China's Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery was largely stable with slight decline by RMB 26/t ($4/t) to RMB 6,248/t ($858/t) on 16 December against RMB 6,222/t ($854/t) on 9 December.

Outlook

The silico manganese market is expected to remain in a phase of small fluctuations in the short term, with cautious trading, weak raw material prices, and increasing downstream market activity.