China: Silico manganese prices rise slightly amid cautious market sentiment

CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices inched up w-o-w to RMB 6,200-6,600/t ($852-$897/t) exw, including taxes, a slight increase of RMB 10/t ($1/t). The silico manganese market showed a slight rise in prices amid cautious sentiment. Steel mills' bids for silico manganese were steady, but overall demand remained subdued, limiting market activity and full demand release.

Factors driving prices

Stability in manganese ore market: The manganese ore market showed stable performance today, with some low-priced sales. Overall, prices remained steady, but market sentiment was mixed, resulting in a cautious, wait-and-see attitude.

Transaction volumes were low, though cost support for silico manganese persisted. In the short term, the manganese ore market is expected to consolidate. Focus will be on manufacturers' purchasing and replenishment activities, as well as port inventory levels, which may influence future market dynamics and price movements.

Weak downstream market: Downstream demand remains weak in the short term, with futures likely continuing this trend. Factories were hesitant to sell at high prices, and industry participants adopted a cautious approach. As the traditional off-season persists, alloy consumption is low.

Additionally, power restrictions and peak production policies in Inner Mongolia and Ningxia significantly impacted silico manganese output. Overall, the market holds a pessimistic outlook on the future trend of silico manganese, given these constraints and uncertainties.

ZCE prices inch up: Silico manganese futures on China's Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery inched up by RMB 42/t ($6/t) to RMB 6,400/t ($880/t) on 2 December against RMB 6,352/t ($873/t) on 25 November.

Outlook

The silico manganese market is expected to experience short-term consolidation and minor fluctuations, as cautious sentiment prevails. The weak manganese ore market and subdued demand from the steel sector will continue to influence price stability, with limited upside in the near term.