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

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Silico Manganese
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4 Nov 2024, 18:06 IST
China: Silico manganese prices remain stable w-o-w amid cautious market environment

  • Downstream demand weakens, futures largely stable



  • Market in off-season, marked by fall in alloy usage

CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices stood at RMB 6,140-6,540/t ($865-$922/t) exw, including taxes, a slight uptick of RMB 130/t ($18/t). Prices remained largely stable this week, with a slight increase, amid cautious market conditions.

Factors driving prices

Poor downstream demand: Downstream demand for silico manganese was weak, with futures relatively stable. Producers were reluctant to sell at lower prices, and market participants exercised caution, given that this period is traditionally considered the off-season, leading to reduced alloy usage. Additionally, power restrictions and peak production policies in Inner Mongolia and Ningxia significantly weighed on silico manganese output.

Overall, the market remains pessimistic about the future.

Manganese ore market sees mixed trends: The manganese ore market witnessed mixed trends this week, with some low-value sales but overall price stability. A cautious atmosphere prevailed, leading to lighter transactions. In the short term, the manganese ore market is expected to strengthen, with key drivers being an increase in manufacturers' purchasing activity and a rise in port destocking.

ZCE prices edge up: Silico manganese futures on China's Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery were largely stable, inching up by RMB 268/t ($4/t) to RMB 6,424/t ($905/t) on 4 November against RMB 6,396 /t ($901/t) on 28 October.

Outlook

The Chinese silico manganese market is expected to remain cautious, with stable prices in the near term. Purchasing activity may be steady but subdued, as the raw material manganese ore market is projected to consolidate and overall demand will likely weaken further during the off-season.

4 Nov 2024, 18:06 IST

 

 

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