China: Silico manganese prices remain steady w-o-w on subdued demand

• Factories unwilling to sell at lower prices

  
  
  

• Power curbs, output caps weigh on supply

  
  
  

CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices remained range-bound w-o-w at RMB 6,230-6,630/t ($865-$922/t) exw, including taxes, with a slight uptick of RMB 90/t ($13/t). The silico manganese market remained stable amid subdued demand and a wait-and-watch atmosphere.

Factors driving prices

Manganese ore prices remain stable: The manganese ore market was relatively stable but with some low-priced sales. The mood remained cautious, leading to lighter transaction volumes. In the short term, the market is expected to strengthen amid higher procurement activities and port destocking.

Weak demand suppresses downstream market: Downstream demand was weak, with factories reluctant to sell at low prices and industry operations being cautious. As winter is traditionally the off-season, there is limited alloy use at the moment. Additionally, power restrictions and peak production policies in Inner Mongolia and Ningxia continue to impact silico manganese output. Market sentiment remains pessimistic regarding the future silico manganese landscape.

ZCE prices decline: Silico manganese futures on China's Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery declined by RMB 172/t ($24/t) to RMB 6,252/t ($869/t) on 11 November against RMB 6,424 /t ($893/t) on 4 November.

Outlook

The Chinese silico manganese market is likely to remain cautious, with stable prices amid weak demand. Buyers and sellers might continue to negotiate, but overall sentiment remains subdued, impacting purchasing activity.