China: Silico manganese prices remain steady w-o-w despite weak ferro alloys market

CBC: Silico manganese prices remained stable w-o-w amid persistent weakness in the ferro alloys market. Prices (Mn: 65%; Si: 17%) inched up by RMB 50/tonne ($7/t) to RMB 6,070-6,450/t ($854-$907/t) ex-works, including taxes.

The recent downturn in the ferro alloys market has led to disappointing steel mill bids, which have resulted in a continuous decline. Factory quotations have been weak, and many buyers remain cautious about the price outlook.

Manganese ore pricing remains stable: Manganese ore prices have slightly adjusted due to a sluggish downstream market. However, they remain consistent overall. There have been no significant changes in mining activities. The domestic market for high-grade manganese ore is stable, with a substantial backlog of port spot orders. Raw material prices are in favour, with the high-priced manganese ore continuing to support the prices of silico manganese and ferro manganese.

Weak downstream demand continues: Downstream demand stayed subdued, with the futures market experiencing a downturn and factories hesitant to provide quotes. Industry insiders were cautious, and while many factories are considering reducing production due to low silico manganese prices, the overall reduction is not significant yet. Some factories began to reduce silico manganese 60-14 production in mid-July, while the reduction in silicon manganese 65-17 was mainly due to overhaul and daily maintenance by some factories.

ZCE silico manganese prices inch down: Silico manganese futures on China's Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery inched down by RMB 44/t ($6/t) to RMB 6,288/t ($884/t) on 2 September against RMB 6,332/t ($891/t) on 26 August.

Outlook

The outlook on silico manganese remains cautious due to the ongoing market downturn and a fall in the prices of ferro alloys. A slight price rebound is possible if there is a gradual reduction in inventory.