China: Silico manganese prices remain stable amid cautious demand, steady supply

CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices were consistent w-o-w at RMB 6,100-6,500/t ($842-$897/t) exw, including taxes, slight down by RMB 10/t ($1/t). The silico manganese market remained stable as participants adopted a cautious, wait-and-see approach.

Factors driving prices

Stability in manganese ore market: The manganese ore market showed general performance, with some low-price sales observed, but overall prices remained stable. A cautious wait-and-see atmosphere has emerged, leading to mixed market sentiments and relatively light transactions.

In the short term, the manganese ore market is expected to consolidate, with key attention on manufacturers' purchasing and replenishment activities, as well as the destocking situation at ports, which could influence future pricing and availability.

Dull downstream market: In the short term, downstream demand appears weak, with factories hesitant to sell at high prices. Industry insiders adopted a cautious approach, especially as the market is in its traditional off-season, leading to reduced alloy usage.

Furthermore, ongoing power restrictions and peak production policies in Inner Mongolia and Ningxia are significantly impacting silico manganese alloy output. Consequently, the market maintains a pessimistic outlook regarding the future trend of silicon manganese, reflecting concerns over demand and production constraints.

ZCE prices inch up: Silico manganese futures on China's Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery inched up by RMB 146/t ($20/t) to RMB 6,352/t ($877/t) on 25 November against RMB 6,206/t ($856/t) on 18 November.

Outlook

The silico manganese market is expected to remain cautious, with stable prices and weak demand. Ongoing negotiations in the manganese ore market may further influence future trends in the sector.