China: Silico manganese prices remain steady amid cautious market sentiment

• Rising coke, power costs lift production costs
  
  
• Supply-demand stalemate underpins stability
  
  

CBC:Chinese silico manganese (Mn:65%, Si:17%) prices remained flat w-o-w to RMB 5,920-6,190/t ($824-$862/t) exw, including taxes.

The silico manganese market remained stable, with supply and demand in a weak balance as steel mills continued to purchase mainly on demand. Recent policy changes introduced no new restrictions on alloy products, keeping the market in a wait-and-see mode, while delays in overseas manganese ore shipments had not yet affected domestic costs.

Market recap:

Stable port prices amid firm trader sentiment: Trading in the manganese ore market has become more cautious. While spot prices at ports have remained relatively stable, traders are showing a growing willingness to maintain prices.

Coke prices have seen regional increases due to coal safety inspections.Combined with the recent seasonal increase in electricity costs, the production cost of silico manganese has shifted upwards.

Meanwhile, delays in South Africas Transnet railway system slowed manganese ore shipments and could have affected port arrivals if prolonged. On the supply side, silica remained sufficient and posed no production constraints.

Steel mills maintain cautious buying: The steel industry was shifting from the off-season toward the peak demand period of September and October, with mills maintaining a cautious stance on alloy procurement. Surveys indicated that silico manganese inventories at many East China mills stayed within safe levels, making large-scale restocking unlikely in the short term.

On the export front, inquiry prices from Southeast Asian mills stayed inverted against domestic levels, and foreign trade orders showed no significant increase. The recovery in automotive steel demand and the acceleration of infrastructure projects provided some support, but a substantial improvement in end-user demand still depended on the implementation of macroeconomic policies.

Outlook

The market is expected to remain range-bound in the near term, with cost-side support offset by demand weakness, which may limit price momentum