China's silico manganese prices rise over $25/t w-o-w on improved trades

China's silico manganese prices continued their uptrend for yet another week. Cash quotations for Chinese silico manganese increased to RMB 6,790 - 6,890/t ($932-946/t) including tax. Prices have risen by RMB 200/t ($27) w-o-w.

Although silico manganese prices rose this week with an improvement in trade activities, some small factories have started producing again, indicating that material availability has increased. However, prices are strong because of steep cost of production, which is prompting manufacturers to keep offers firm in order to maintain margins.

The railway track between the Gabonese ports of Ovindo and Franceville has been repaired and transportation of manganese ore has improved. However, there will be a period during which not much ore will arrive in Gabon, so the inventory is likely to go down. This, along with some external support, might keep prices of manganese ore high.

When it comes to demand for silico manganese, the outlook remains uncertain. The futures market is unpredictable even as traders are adopting caution.