Price trend

Last week, the silicomanganese market was primarily volatile, with manganese ore prices fluctuating within a narrow range. Chemical coke prices remained relatively stable, maintaining general cost support. Post-holiday demand pressures were evident due to inventory accumulation, and steel mills maintained high production rates despite shrinking profits. In the absence of positive factors, steel bidders maintained their downward pressure on prices. Data from the SunSirs Commodity Market Analysis System showed that the market price for silicomanganese (FeMN68Si18) in Ningxia was around 5,550-5,600 RMB/ton last weekend, with an average price of 5,570 RMB/ton, down 0.89% from the beginning of the week.

Influencing factors

On the supply side:

Last week, some factories in Inner Mongolia resumed production after maintenance, with iron production starting last week and overall output increasing. No new capacity plants had yet started production, and some factories previously planning to start production in October indicated that they may postpone it until next month. As of October 17, factories had limited available inventory and offer prices, primarily focusing on fulfilling orders. Some factories reported operating at a loss and experiencing difficulties in shipping. The Ningxia market was relatively calm, with factory production maintaining pre-holiday performance. Some factories were undergoing minor maintenance, which was relatively short.

In southern China, Yunnan was still experiencing its flood season, resulting in favorable electricity rates and minimal production cuts. However, electricity prices are expected to rise sharply to around 0.5 RMB in November, leading to an estimated 60% of factories halting operations. In Guangxi, there were temporarily few silicomanganese production plants, with some switching to high-manganese production.

According to statistics, the operating rate of silicomanganese enterprises across the country last week was 43.28%, an increase of 0.09% from the previous week; the average daily output was 29,830 tons, an increase of 655 tons.

As of October 16, according to incomplete statistics, the national inventory of silicomanganese enterprises was 262,500 tons, an increase of 20,000 tons month-on-month. Among them, Inner Mongolia had 43,000 tons, an increase of 1,500 tons month-on-month; Ningxia had 189,500 tons, an increase of 16,500 tons month-on-month; Guangxi had 10,000 tons, an increase of 1,000 tons month-on-month; Guizhou had 6,000 tons, an increase of 500 tons month-on-month; Shanxi, Gansu, and Shaanxi had 6,000 tons, a decrease of 500 tons month-on-month; and Sichuan, Yunnan, and Chongqing had 8,000 tons, an increase of 1,000 tons month-on-month.

Upstream Costs:

The manganese ore market was volatile, with prices fluctuating within a narrow range. The semi-carbonate sub-index price at Tianjin Port was 33.5-34 RMB/MTU, South African high-speed rail was around 30 RMB/MTU, Gabon was 39.8-40 RMB/MTU, and Australian block sub-index price was 39-41 RMB/MTU. Downstream alloy price fluctuations were under observation. Recently, spot manganese ore prices at Qinzhou Port had fluctuated. Manganese ore inventories at Qinzhou Port had decreased, and South African manganese ore was in short supply. Prices had risen to varying degrees. Semi-carbonate prices were 37-37.5 RMB/MTU, South African high-speed rail was around 31.5 RMB/MTU, South African medium rail was 37 RMB/MTU, and Australian seed prices were 34.5-35.5 RMB/MTU.

On the foreign market, South Africa's UMK company announced its manganese ore quotation to China in November 2025. The Mn36% South African semi-carbonate manganese ore (lump ore) was quoted at US$4.1/ton unit (CIF China main port), a slight increase of US$0.1/ton unit compared with October.

Demand:

HBIS’ second-round October silicomanganese price was 5,800 RMB/ton, compared to 5,750 RMB/ton in the first round. The September silicomanganese price was 6,000 RMB/ton. The October 2024 price was 6,200 RMB/ton. Purchases are expected to be 16,500 tons, compared to 17,000 tons in September. (silicomanganese purchases for October 2024 were 12,000 tons.) This included: Tangshan Iron & Steel's new base (-500 tons), Chengde Iron & Steel (-4000 tons), Wugang Iron & Steel (+100 tons), Handan Iron & Steel (-4000 tons), Shijiazhuang Iron & Steel (-400 tons), and Zhangxuan High-Tech (+300 tons).

A certain group was bidding for 4,500 tons of silicomanganese 6,517 processing blocks, of which the price in Jiangsu was 5,730 RMB/ton for 1,500 tons, the price in Yunfu, Guangdong was 5,770 RMB/ton for 2,200 tons, and the price in Heyuan, Guangdong was 5,840 RMB/ton for 800 tons. All prices were cash prices including tax.

Market outlook

In general, the transmission support effect of the cost side was limited, and the price of manganese ore had loosened relatively; and the supply level of silicomanganese continued to be at a high level. At the same time, in the absence of positive factors to boost it, the sentiment of steel bidding to suppress prices remained unabated. SunSirs expects that the silicomanganese market may maintain consolidation in the short term.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.