Chinese silico manganese prices fall on reduced production and cautious moves

Silico manganese prices in China diminished this week by RMB 100/t ($14/t) w-o-w as there were production cuts in some factories and cautious purchasing from buyer side. Domestic silico manganese (Mn: 65%) acceptance offers were at RMB 6,360-6,460/t ($885-$899/t). All prices were exw, including tax.

The silico manganese market remained moderate wherein prices slightly fell due to the vigilant market outlook. The supply of silico manganese stayed weak, and some factories even curtailed their production.

Lately, the market for manganese ore remained upside down. It was like the game of tug-of-war between the buyers who wanted to buy it and the sellers who wanted to sell it as news says that a few deals have been made at really low prices, but it is hard to find cheap manganese ore in general.

More and more manganese ore arrived in warehouses, which caused factories to lower their prices. This made things really chaotic at the ports where the transactions happened.

Furthermore, looking on to the demand for silico manganese where the futures market operated with dull market atmosphere, and traders in the industry were watchful. However, as the steel industry grows, there might be more demand for silico manganese.

Outlook

Suppliers felt positive about the future. In the short term, one may watch out for low-price transactions and changes in supply and demand.

The cost of making silico manganese remained high, and there were not many transactions that happened. Overall, it looks like the silico manganese market will stay stable in the coming days.

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