China: Silico manganese prices remain static amid slow market movement

The prices of silico manganese in China stayed stable as the market moved at a slow pace post holidays. The prices were at around RMB 6310/t to 6410/t ($887/t-$901/t). All prices were ex-works and inclusive of taxes.

The silico manganese market in China remained stayed steady with average trading atmosphere. After the holiday break, the price of manganese stood stable with monotonous operations. Steel mills in the northern region taking their time with the bidding process, and traders were being careful with their moves. The supply in the market stayed pale, and companies received materials at a slower pace. With the Spring Festival, the market activity decreased, and prices were unchanged.

However, the manganese ore market improved lately because of some transportation issues and increased costs for manufacturers. The prices were supported by these factors. The railway track between the Gabon ports of Ovindo and Franceville has been fixed and is back in operation. This means that in the future, the port inventory will decrease, and with the support from the external market, the prices of ore might go up.

When it comes to the demand for silico manganese, things were average. The futures market functioned poor dull, and industry players were being cautious. However, as steel recruitment progresses, there is hope for increased demand. Suppliers felt positive about the market's future. In the short term, an eye to be kept on low-price transactions and changes in the supply and demand of silico manganese.

Outlook

So, overall, the market is in a wait-and-see mode. Some experts believe that even though the market confidence is average, there is still stable support at the bottom.

With the recent strong manganese ore prices and the reduced production before the Spring Festival, we can expect the alloy market to keep going. So, in the short term, the silicomanganese market will probably stay the same.

Note: This article has been written in accordance with an agreement between CBC and SteelMint.