Chinese silico manganese prices decline by over $70/t w-o-w

The silico manganese market in China faced a declining price trend amid uncertain market outlook. While some regions exhibited a growing inclination among silico manganese enterprises to resume operations, challenges such as rise in supply and subdued downstream demand pose uncertainties.

The tax-inclusive spot prices of 60-14 silico manganese in China diminished w-o-w by RMB 515/t ($71/t) to RMB 7,540-7,730/t ($1,038-1,064/t) this week amidst cautious market moves.

Factors driving the silico manganese market were:

Raw materials prices remain range-bound: Manganese ore market persisted with stability in prices, supported by minimal supply disruptions from policies. Prices of higher grades inched up by $0.05/dmtu while lower grades ore fell down by $0.30/t which has also brought the prices of silico manganese down in the Chinese market.

Additionally, the overall market remained in a stalemate as limited acceptance towards higher offers was also noticed in the market.

Narrowing steel demand: Downstream, terminal steel demand has entered a seasonal downturn, impacting steel mills with low profit margins and limited scope for increased output. This scenario has weakened support for silico prices from the demand side.

However, suppliers maintain a positive outlook. In the short term, monitoring low-price transactions and shifts in silico and manganese supply-demand dynamics remain crucial for market participants.

ZCE silico manganese prices rise w-o-w: Silico manganese prices on China's Zhengzhou Commodity Exchange (ZCE) for September 2024 delivery rose by RMB 296/t ($41/t) to RMB 7,918/t ($1,090/t) on 21 June against RMB 7,622/t ($1,048/t) seen on 14 June.

Outlook

The overall market remains cautious with both buyers and sellers adopting a wait-and-watch approach. Despite improving conditions in the manganese ore market and rising silico manganese costs, downstream acceptance needs enhancement.

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