China: Silico manganese prices range-bound w-o-w on limited downstream demand

The Chinese silico manganese market remained largely stable, with prices inching down by RMB 100/t ($14/t) to RMB 7,440- 7,630/t ($1024-$1,050/t). Stable manganese ore prices and production resumption in some regions were noticed. Factories remained cautious in their quotes due to fluctuating costs and slowing downstream demand.

Factors that impacted the market

Market dynamics of manganese ore: Manganese ore prices remained high despite the cautious sentiment from silico manganese enterprises. Repairing of the Gabon railway line improved operations, reducing port inventory. Meanwhile, Australian ore shipments were blocked, and foreign market support suggest a potential price rebound.

Firm downstream market: Smelters remained cautious with offers due to high costs, leading to a gradual withdrawal of high silico manganese prices. The futures market showed slight increases, and factories are intent on supporting prices. Industry insiders are cautious, but there is optimism of future demand growth. Monitoring low-priced transactions and supply-demand changes remained crucial.

ZCE silico manganese prices dip w-o-w: Silico manganese prices on China's Zhengzhou Commodity Exchange (ZCE) for September 2024 delivery fell by RMB 388/t ($53/t) to RMB 7,530/t ($1,036/t) on 1 July against RMB 7,918/t ($1,089/t) seen on 24 June.

Outlook

The manganese ore market is cautiously optimistic, with improving raw material conditions and rising costs bolstering silico manganese prices. Despite this, downstream demand is weak. The market remains vigilant and outlook suggests a wait-and-see approach for both buyers and sellers.