China: Silico manganese prices remain stable on fewer market trades

Chinese silico manganese prices were consistent this week as cautious approach was adapted by the market players. Prices were at around RMB 6,110/t to 6,210/t ($850/t-$864/t). All prices were ex-works and inclusive of taxes.

What cause the Silico manganese market to stay stable?

Average trading atmosphere: The silico manganese market in China operated stably with an average trading atmosphere. Market negotiations remained weak, but as large-scale steel plants finalized their bids, traders' inquiries increased.

Demand driven purchases: Actual purchase quantities were largely demand-driven, and downstream inquiries purchases have not yet picked up which may be the cause for the consistency in prices.

Weak future market: The futures market indicates poor sentiment, with cautious operating sentiment among industry players and average alloy transactions. Despite this, there are positive expectations for increased demand as steel recruitment progresses, and suppliers hold an optimistic outlook for the market.

Factors that support the Silico manganese market:

Manganese ore supports prices: The sentiments in the manganese ore market indicated that price support still exists, with acceptable market performance and the overall cost of silico manganese played a supporting role.

Refurbishment of railway track: The restoration of the railway track between the Gabon ports of Ovindo and Franceville has been completed, leading to a window period for arrivals in Gabon and a continued decline in port inventory. With external market support, there is potential for ore prices to rebound.

It is important to monitor low-price transactions and changes in the supply and demand dynamics of silicon manganese in the short term.

Outlook

It appears that there is a strong wait-and-see attitude prevailing in the market, with both buyers and sellers exercising caution.

In the short term, the silico manganese market is anticipated to remain stagnant.