China's silico manganese prices remain steady on market cautiousness

CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices remained firm w-o-w at RMB 6,030-6,430/t ($830-$885/t) exw, including taxes. The silico manganese market remained stable, with cautious sentiment prevailing as factories reduce quotations. Manganese ore operations were steady, with no significant fluctuations and moderate demand.

Stable manganese ore market amid cautious sentiment: The manganese ore market showed general performance w-o-w, with some low-price sales. Prices remained relatively stable, and a wait-and-see atmosphere prevailed, leading to a mixed market sentiment and lighter transactions.

Despite the cautious outlook, the cost support for silico manganese remains in place. In the short term, the manganese ore market is expected to consolidate, with key factors to watch being manufacturers' purchasing activity, replenishment, and ongoing port destocking, which will influence the market's direction moving forward.

Muted demand and output restrictions continues: Downstream demand is expected to remain weak in the short term, with factories hesitant to sell at low prices and industry participants adopting a cautious approach. The market is currently in the traditional off-season, leading to reduced alloy consumption. Additionally, power restrictions and peak production policies in Inner Mongolia and Ningxia continue to impact silico manganese output, contributing to a generally pessimistic market outlook.

Outlook

The silico manganese market is likely to remain weak in the short term, with moderate alloy demand and steel mill pricing under observation. Manganese ore inventory digestion may lead to price adjustments, with steel mill bidding trends influencing future movements.