SunSirs: Siliconmanganese Production Increased Slightly, but the Market is still Weak

Last Wednesday, with the final price of Hegang's silicon manganese purchase price in May at 5,850 RMB/ton, which was better than market expectations, it brought some relief to the short-term market sentiment to a certain extent. However, some steel mills still bid relatively low. After all, the downstream market demand is extending to the off-season, and steel mills are in a price-cutting mood for alloy demand.

At the same time, there are few news that silicon manganese enterprises in the production area continue to reduce production recently. Under the background of overall purchasing price-cutting mentality and loose supply, silicon manganese prices are difficult to change the weak tone of fluctuations.

According to the data of the commodity market analysis system of SunSirs, the market price of silicon manganese in Ningxia (specification FeMN68Si18) this weekend is about 5,550-5,650 RMB/ton, and the average market price is 5,642.00 RMB/ton, which is slightly lower than the beginning of the week by 0.39%.

1. Influencing factors

Supply side: This week, the output of silicon manganese alloy in Inner Mongolia increased slightly, and some factories ignited DC furnaces, and some other factories resumed production after maintenance, with less production reduction. The operating rate of Ningxia factories has gradually stabilized after the previous shutdown, but they are still in a loss, and the factories maintain reduced load production.

Most factories in the southern region are still in a state of shutdown, and there are few factories in operation. There is no obvious willingness to resume production in Guangxi and Guizhou in the near future. Some factories in Guilin will start furnaces at irregular intervals during the period of incremental electricity charges, which will not have a significant impact on the overall output. Yunnan is about to enter the flood season. At present, some factories have plans to start furnaces at the end of the month, and some other factories that have stopped production will resume production when the electricity charges drop to a low level in July. Overall, the operating rate in the south will remain low in the short term.

According to statistics, the operating rate of manganese silicon enterprises nationwide this week was 34.18%, an increase of 0.58% from last week; the average daily output was 23,600 tons, an increase of 350 tons.

Upstream cost side: The manganese ore market rebounded after stopping the decline and entered a stalemate stage. The transaction was slightly loosened at the beginning of the week, and some traders' quotations were still strong. As the market news stimulated the rapid rise of silicon manganese futures prices, the manganese ore prices began to follow. It was also difficult for factories to lower prices. The port-to-port cost price temporarily supported the spot. The inventory of manganese ore in the south increased to 950,000 tons, and the contradiction between supply and demand increased, but most of them were Gabonese high-speed rail and medium iron ore. The mainstream ore types did not change much, and the price was relatively consolidated.

Data showed that the current price of manganese ore Australian block in Tianjin Port was 41 RMB/ton, semi-carbonic acid was 33.5-34.5 RMB/ton degree, and Gabon block was 37.5 RMB/ ton degree; the price of manganese ore Australian block in Qinzhou Port was 41-42 RMB/ ton degree, semi-carbonic acid was 34.5 RMB/ ton degree, and Gabon block was 39.5-40.5 RMB/ ton degree

On the foreign market, the shipment of manganese ore in early May seems to be higher in South Africa, and a certain amount of South 32 Australia shipment is expected to arrive in June, but the overall pressure on the arrival of oxide ore is relatively small. Jupiter announced the shipping price of manganese ore to China in June 2025, and the price of South African semi-carbonate block was US$3.85/ ton degree, which was the same as the price last month.

Demand: A large steel mill in North China has now finalized the purchase price of silicon manganese alloy in May at 5,850 RMB/ton, which is 150 RMB/ton higher than the inquiry price and 100 RMB/ton lower than the April price; the purchase quantity this time is 11,600 tons, with a month-on-month increase of 200 tons. The latest bidding price of silicon manganese alloy of a steel mill in Southwest China was finalized at 5,780 RMB/ton in cash, which was 40 RMB/ton lower than the previous round of purchase price, and the purchase quantity was 1,500 tons.

The price of silicon manganese in a steel plant in Fujian is 5693 RMB/ton, the bidding quantity is 13,000 tons, half cash and half acceptance, including tax to the factory, with a discount basis; the price of silicon manganese in a steel plant in East China is 5780 RMB/ton, the bidding quantity is 4,000 tons, and acceptance is including tax to the factory.

2. Market Forecast

On the whole, the situation of silicon manganese steel bidding in the north and south regions has become clear, but the silicon manganese market is under pressure and weak. The initiative of silicon manganese producing areas to continue to reduce and stop production has weakened, and it is reported that some furnaces have been overhauled, but the demand side is weak, and the terminal market has gradually entered the seasonal off-season.

SunSirs expects that the manganese silicon market may continue to fluctuate in a weak and narrow range in the short term, and it is still necessary to wait and see the changes brought to the market by the subsequent news progress.

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