Chinese silico manganese market witnesses slight uptrend amid mixed sentiments

Chinese silico manganese prices increased by RMB 650/t ($14/t) amid mixed sentiments. The overall pace of trading activity remained average.

Spot prices of silico manganese (60-14) hovered around RMB 8,500/t-8,700/t ($1,174-1,201/t) ex-works and inclusive of taxes.

Manganese ore prices stay strong: The manganese ore market remains strong with consistently high prices, providing cost support to silicon manganese alloys producers.

A significant development was noticed as the repair and full restoration of the railway track between Gabon's Owendo and Franceville ports took place. This restoration is expected to create a window for increased port arrivals, leading to a decline in port inventory.

Furthermore, disruptions in the shipment of Australian ore contributed to strong foreign market support, potentially driving a rebound in ore prices.

Futures market remains strong: On the downstream front, there was an increase in the futures market, with factories showing a strong inclination to support prices.

Market operators exercised caution, but the continuous adjustments in the subsequent market generated optimistic expectations for demand growth. Suppliers are hopeful of a positive future market trend.

ZCE silico manganese prices decline: Silico on China's Zhengzhou Commodity Exchange (ZCE) for September 2024 delivery declined by RMB 1,920/t ($265/t) to RMB 7,428/t ($1,026/t) on 3 June which was RMB 9,348/t ($1,099/t) on 27 May.

Outlook

Overall, the market remains in a wait-and-see mode, with both buyers and sellers exercising caution. As the market continues to recover, the outlook for silico manganese is expected to improve.

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