Positive Sentiment Seen Keeping China Silico Manganese Prices Firm

Chinese Silico Manganese prices are expected to stay firm over the near term thanks to the improved domestic market sentiment. As of December 26, the price for 65-17 grade Silico Manganese in North China was at Yuan 6,150/MT (USD 879/MT) EXW including the 13% VAT, representing a gain of another Yuan 150/t from one week earlier, according to Mysteel's data.
Market participants say domestic Silico Manganese prices are likely to keep firm or even see a further increase in the coming term, as major steelmakers have returned to the market and started their procurement for January. Boosting optimism in the domestic market is the fact that the bids are better than the market had expected Mysteel Global notes.

For instance, Hebei Iron and Steel Group (HBIS), a leading Silico Manganese buyer in North China's Hebei province, plans to purchase 26,600MT of Silico Manganese for January, higher by 600MT from the tonnage it bought in December. HBIS's inquiry price for January is reported at Yuan 6,400/MT, a significant rise compared with its bidding price of Yuan 5,950/MT for December and indicating that for the time being, it's hard for steel producers to buy at a low price.

"Enquires in the domestic market have increased recently while the offering prices (from Silico Manganese suppliers) are staying firm," a market source in Shanghai commented, adding that some Silico Manganese traders in South China have decided to buy some products from North China given the shortage of local supplies.

Mysteel's latest weekly survey among the 121 Chinese Silico Manganese smelters tracked regularly showed that their daily output reversed down by 705MT/day on week to reach 27,359MT/day - another factor lending some support to China's Silico Manganese market. The smelters under Mysteel's survey host almost all the country's Silico Manganese capacity, Mysteel Global notes.

Benefitting from the positive sentiment in the downstream Silico Manganese market, Chinese Manganese ore prices have remained stable recently, Mysteel Global notes. As of December 26, Mysteel's price index of South Africa-origin 36.5% grade Manganese ore at North China's Tianjin port was hovering at Yuan 36.54/dmtu, unchanged from one week earlier, Mysteel's data showed.

This article has been published under article exchange agreement between Mysteel Global and SteelMint.