Price trend

The silicomanganese market fluctuated last week. With the Spring Festival holiday approaching, steel mills had largely finished stockpiling, resulting in sluggish market transactions and low activity. Factories primarily focused on stockpiling or fulfilling previous orders, with little fluctuation in spot prices. The market essentially entered a holiday mode. According to data from the SunSirs' commodity market analysis system, the market price of silicomanganese (FeMN68Si18 specification) in Ningxia was around 5,550-5,600 RMB/ton at the end of last week, with an average market price of 5,580.00 RMB/ton, a 0.54% increase compared to the previous week.

Influencing factors

On the supply side: In Inner Mongolia, some factories that had previously undergone maintenance resumed production last week and returned to normal operating rates last week, with some newly added capacity increasing iron output; in Ningxia, production fluctuated little, with factories that had previously undergone maintenance remaining under maintenance, and manganese ore inventories at alloy plants increasing.

In southern China, electricity prices in Guangxi rose month-on-month in February. Some factories reported electricity costs of around 0.6 RMB/kWh, making production impossible. Some factories suspended operations to await government subsidies for electricity during the Spring Festival. In Guizhou, the peak-valley time-of-use policy was abolished on February 1st, and some factories had already begun suspending production, awaiting market trends after the holiday to decide whether to resume. High costs continued for factories in the south, further increasing production difficulties.

According to statistics, the operating rate of silicomanganese enterprises nationwide last week was 35.77%, a decrease of 0.44% compared to the previous week; the average daily output was 27,285 tons/day, a decrease of 200 tons.

According to incomplete statistics, as of February 6th, the national inventory of silicomanganese enterprises was 377,800 tons, an increase of 3,500 tons compared to the previous period. Among them, Inner Mongolia had 60,300 tons, an increase of 1,500 tons; Ningxia had 301,000 tons, an increase of 2,000 tons; Guangxi had 2,000 tons, a decrease of 500 tons; Guizhou had 1,500 tons, a decrease of 500 tons; (Shanxi, Gansu, and Shaanxi) had 11,000 tons, an increase of 1,000 tons; and (Sichuan, Yunnan, and Chongqing) had 2,000 tons, unchanged.

Upstream cost side: The manganese ore market continued to operate firmly and stably. However, the release of downstream demand has been largely completed, which had suppressed the desire to raise prices. Nevertheless, the prices of some types of ore were still going up. Even if demand companies in the southern region further reduce or stop production, manganese miners are still reluctant to sell at low prices.

Data shows that as of February 6, manganese ore lumps from Australia were quoted at 41.5-43.5 RMB/MTU, semi-carbonated manganese ore at 36.5-37 RMB/MTU, and Gabonese ore lumps at 42.5-43 RMB/MTU; manganese ore lumps from Australia were quoted at 42 RMB/MTU, semi-carbonated manganese ore at 34.5-35.5 RMB/MTU, and Gabonese ore lumps at 41.5-42.5 RMB/MTU.

On the international market, UMK announced its March 2026 price quote for South African semi-carbonate manganese ore to China at $4.45/MTU, up $0.13/MTU month-on-month. Comilao's March 2026 price quote for Gabonese manganese ore shipped to China is $4.98/MTU, up $0.08/MTU month-on-month.

On the demand side: As the Spring Festival atmosphere gradually intensified, end-user demand weakened further, and steel mills reduced their pig iron production.

Last week, steel mills hardly launched any bidding, and demand stagnated. According to long-term contract factories in the north, Hebei Iron and Steel will not conduct any bidding before the Spring Festival in February, and its inventory is still adequate.

Market Outlook:

In summary, manganese ore prices remained firm on the cost side, while coke prices fluctuated little. On the supply side, northern regions largely maintained normal production levels except for short-term maintenance shutdowns, with some factories experiencing slight inventory pressure. On the demand side, steel mills completed their pre-holiday stockpiling, and major steel mills have not yet launched a new round of bidding. SunSirs predicts that the silicomanganese market will likely continue to fluctuate in the short term.

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