Chinese silico manganese prices drop $14/t amid cautious market sentiment

The Chinese silico manganese market remained steady despite a slight decline in prices by RMB 100/t ($14/t) amid cautious sentiments. The overall pace of trading activity remained average.

Spot prices of silico manganese (60-14) hovered around RMB 7,850/t-8,050/t ($1,084-1,112/t) ex-works and inclusive of taxes.

Market drivers

Rising smelting cost: Rising smelting costs and cautious downstream purchase sentiment impacted production restart decisions. However, increasing futures prices have boosted factory sentiment, sustaining stable market conditions for silico manganese, with expectations of positive developments ahead.

Strong raw material market: The manganese ore market maintains its strength, ensuring steady cost support for silico manganese production. The restored railway track in Gabon may result in heightened port arrivals. Concurrent disruptions in Australian ore shipments, alongside favourable foreign market conditions, hint at a potential ore price rebound.

Improvement in downstream market: The downstream futures market showed a slight uptick, prompting factories to support prices, though operators remain cautious. Optimism for increased demand persists, with suppliers holding a positive outlook.

Outlook

Overall market sentiment remained cautious, with buyers and sellers adopting a wait-and-see approach. Spot market caution leads to conservative factory quotations. Recovery is expected in the alloys markets in the near term.

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