Chinese silico manganese prices drop ahead of arriving winter season

Prices of silico manganese in China dropped this week by RMB 30/t ($4/t) w-o-w. Domestic silico manganese (Mn: 65%) acceptance offers were firm at RMB 6,490-6,590/t ($915-$929/t). All prices are exw, including tax.

The silico manganese market in China did pretty well with trading atmosphere being calm and not too busy. Traders were being cautious with their operations, and the price of manganese remained steady.

However, the market for manganese ore remained dull. But, railway track between Gabon's ports of Ovindo and Franceville was fixed and is working again. This means that more materials can come in, and the prices might go up.

On the other hand, the futures market didn't do well, and players were careful with their transactions. But, as more steel is needed, traders were hopeful that the demand for silico manganese will go up. Suppliers were optimistic about the future.

Outlook

Anticipate market stability in the near term, given the current scenario. The off-season is upon us, and uncertainties surround winter production curbs in various regions. Manufacturers might have amassed inventory, potentially leading traders to hurriedly sell at lower prices.

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