- Raw material prices stable but buyers wary
- Futures on ZCE for May delivery drop $41/t
CBC: Chinese silico manganese (Mn: 65%, Si: 17%) prices declined by INR 350/t ($48/t) to RMB 6,080-6,480/t ($838-$893/t) exw, including taxes. The silico manganese market in China is characterised by cautious sentiment, with key factors influencing both the raw material side and demand outlook.
Raw material stable but market in wait-and-watch mode: The manganese ore market remained relatively stable, with no significant fluctuations expected in the short term. The overall market remained subdued with light transactions. The cost support from manganese ore ensures some stability in the silico manganese price, but the overall market remains in a wait-and-see mode. Manufacturers’ purchasing behaviour and inventory levels at ports will continue to dictate short-term trends.
Weak downstream demand with seasonal challenges: Demand from downstream sectors remained sluggish, with many factories reluctant to sell at lowered prices. Additionally, it’s the traditional off-season for alloy usage, further suppressing demand. Power restrictions and production cuts in regions like Inner Mongolia and Ningxia have also impacted silico manganese production, creating uncertainty about future demand recovery.
Demand from mills still lacklustre: Overall, there’s a pessimistic outlook on the market’s near-term prospects. The ferro alloys market is experiencing a downturn, and the demand from steel mills is generally lacklustre. With futures remaining at low levels and no immediate significant change in the supply-demand balance, the market remains cautious. Key attention will be on the steel mills’ bidding process post-holiday and the pace at which manganese ore inventories are ingested.
ZCE futures prices decline: Silico manganese futures on China’s Zhengzhou Commodity Exchange (ZCE) for May 2025 delivery declined by RMB 40/t ($6/t) to RMB 6,398/t ($882/t) on 17 February against RMB 6,438/t ($888/t) on 10 February 2025.
Outlook
In the short term, the silico manganese market is expected to remain relatively stable with little change in price fluctuations. The market will continue to watch for developments in steel mill bids and manganese ore inventory movements, though an immediate price surge is unlikely.
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