China: Silico manganese prices remain stable as demand weakness offsets cost support

• Tight supply of low-priced manganese ore lifts production costs
  
  
• Seasonal steel market slowdown, narrow mill margins cap trade
  
  

Chinese silico manganese prices (Mn 65%, Si 17%) remained steady with a slight correction of RMB 10/t ($1/t) w-o-w to RMB 5,670-6,010/t ($839-889/t) exw in the week ended 15 June 2026.

The silico manganese market remained largely stable amid cautious trading. Supply-side regional disparities persisted, while weak seasonal demand and cautious steel mill procurement continued to limit transaction growth and market momentum.

Market updates

Cost floor strengthens market stability: The market continues to find support from elevated production costs. Reduced availability of low-priced manganese ore, stronger miner resistance to further price declines, rising coke and chemical coke costs, and widening regional electricity price differences have reinforced the industry's cost base. However, this support remains largely defensive in nature. While producers are increasingly reluctant to lower offers, subdued demand and cautious procurement activity limit the markets ability to convert cost pressures into meaningful price gains, keeping sentiment stable but lacking upward momentum.

Steel demand weakens amid seasonal market slowdown: Silico manganese demand remains closely tied to steel mill procurement, which has turned increasingly cautious amid seasonal weakness and shrinking steel margins. While blast furnace operations remain relatively stable, slower finished steel sales and profit pressure have encouraged mills to focus on need-based purchasing, price negotiations, and delayed tendering. Limited arbitrage buying offers only temporary liquidity support rather than genuine consumption growth. Consequently, downstream demand remains fragile, leaving market sentiment highly sensitive to disappointing steel bidding outcomes.

Outlook

Silico manganese prices are expected to remain largely stable, supported by firm costs but constrained by weak demand. Future direction will depend on steel tender outcomes, production trends, and manganese ore inventory movements.

(With inputs from CBC)