China's silico manganese market remains stable amid active trading atmosphere

The prices of silico manganese stayed firm this week at around RMB 6,590 to 6,690/t ($907-$921/t) including tax, with an average price of RMB 6,640/t ($914/t). The trading atmosphere remained average, which meant things went smoothly. Traders have positive market outlook sentiments with well supported prices.

Silico manganese had escalated demand and manufacturers delivered it too. The manufacturing cost stayed sound because the prices of coke, one of the materials needed, are not too high. It indicated that the market is expected to improve in the short-term.

The market for manganese ore, one of the main materials, has been stable recently. There was a problem with a railway track in Gabon, but it has been fixed now. This means that the ore can be transported to the port more easily, and the inventory at the port will go down. With all these positive factors, the prices of the ore might stay strong.

However, the futures market stayed slightly weak and unpredictable. Traders were hesitant to buy, that made the market unhurried. On the other hand, the growing steel industry guides the demand of silico manganese in the right direction. Suppliers rose their prices as they think that demand will go up.

Outlook

There are some positive factors supporting the prices of silico manganese. It is anticipated that the prices of silico manganese would stay stable in the near future.

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