Chinese silico manganese prices stable w-o-w in cautious market

CBC: The Chinese silico manganese market was stable this week amid a cautious wait-and-see approach. Prices (Mn: 65%; Si: 17%) remained unchanged at RMB 6,010-6,410/t ($843-$899/t) exw, including taxes.

Regional mills have commenced purchasing, positively influencing demand for silico manganese while suppliers responded well to the improved purchasing activity.

Factors driving the market

Manganese ore prices stable despite cautionary outlook: The manganese ore market was stable, with some low-priced transactions seen. Overall, mixed sentiments resulted in lighter trading activity. In the short term, consolidation in the manganese ore market is expected. Stakeholders should monitor manufacturers' purchasing behaviour, replenishment activities, and port destocking to gauge future market developments.

Poor downstream demand: Downstream demand for silico manganese stayed weak, with futures prices trending downward and industry participants exercising caution. As it is the traditional off-season, alloy consumption remained low.

Additionally, ongoing power restrictions and peak production policies in Inner Mongolia and Ningxia significantly impacted silico manganese output. Overall, the market continues to maintain a pessimistic outlook regarding the future trends of silico manganese.

ZCE prices improve: Silico manganese futures on China's Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery up by RMB 268/t ($38/t) to RMB 6,396/t ($897/t) on 28 October against RMB 6,128 /t ($860/t) on 21 October.

Outlook

The outlook for the silico manganese market is cautious. Prices have stabilised temporarily, but demand is likely to remain weak. Buyers and sellers are actively negotiating in a subdued manganese ore market, adding to the uncertainty in purchasing activity.