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Chinese silico manganese prices edge down by $13/t on slow trades

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Silico Manganese

BigMint Bureau

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21 Oct 2024, 19:00 IST

Chinese silico manganese prices edge down by $13/t on slow trades

Manganese ore market holds steady

ZCE silico manganese futures decline

CBC: The Chinese silico manganese market trended down this week amid slow market movements with lower trades. Prices (Mn: 65%; Si: 17%) inched down by RMB 90/t ($13/t) to RMB 6,010-6,410/t ($855-$901/t) exw, including taxes.

Weak market sentiments kept silico manganese prices under pressure, with some holders selling material at lower prices to recover funds as steel demand remained uncertain. With downstream customers hesitant to act, trade momentum was sluggish, reflecting market stagnation.

Factors driving the market

Manganese ore market remains stable: The manganese ore market showed generally stable performance, with some sales occurring at the lower end of the price spectrum. Mixed market sentiments led to a wait-and-watch atmosphere, resulting in lighter transaction volumes. In the near term, the manganese ore market is expected to strengthen, and future trends will be shaped by manufacturers' purchasing activities and port destocking efforts.

Weak downstream demand: Downstream demand remained weak, with steel mills having entered the off-season, which has diminished enthusiasm for purchasing silico manganese. Consequently, purchase volumes have decreased, which has made it challenging to secure high prices.

ZCE prices slide: Silico manganese futures on China's Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery fell by RMB 238/t ($33/t) to RMB 6,128/t ($862/t) on 21 October against RMB 6,366 /t ($895/t) on 11 October. Futures prices fluctuated at the opening of the trading session, but prices of silico manganese steadily continued to decline, reflecting ongoing bearish sentiment in the market.

Outlook

The outlook for silico manganese appears challenging, with weak prices and poor market sentiment. As downstream steel mills enter the off-season, production pressures are mounting. Some factories may reduce or halt production to manage costs and align with demand.