Chinese silico manganese prices rise slightly on increased trade volumes

Prices of silico manganese in China rose slightly to around RMB 6,590 to 6,690/t ($903-$917/t). On average, it's about RMB 6,640/t ($910/t). Prices increased by RMB 50/t ($7/t) given a stable trading atmosphere.

Factories had limited supplies which resulted in increased sales volumes. This could be good news for the market because it means prices will stay high. Prices of materials needed to make silico manganese remained stable and it is expected that prices will stay firm for a while.

The market for manganese ore has been pretty stable lately. It is not too tight, which is good. There was a problem with a railway track in Gabon, but it is all fixed now. This means that more manganese ore can come to the port, and prices will stay high resulting in a healthy market atmosphere.

The futures market has remained bearish. Traders did not buy a lot of silico manganese which instilled caution in manufacturers. But there is hope as the steel industry is doing pretty well. So, the manufacturers are in wait-and-watch mode as they are hoping that the demand of silico manganese will go up which, in turn, would support prices.

Outlook

Overall, things are looked favourable for the silico manganese market. Raw materials are also in good supply, which is a positive sign. However, the demand for silico manganese is not very high right now, so the market is still a little unsure. But it can be expected that the market will stay stable in the near term.

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