SunSirs: Cost Support Was Strong, and the Silicomanganese Market Was Consolidating at a High Level

Price trend

The silicomanganese market consolidated at a high level this week, with the spot market fluctuating widely following the futures market. August steel prices rose month-on-month, with some prices increasing by 300-400 RMB/ton, in line with market expectations. The overall market trading atmosphere was favorable, with manufacturers recently selling a large number of forward orders, showing a strong price-supporting mentality. According to data from the SunSirs commodity market analysis system, the market quotation for silicomanganese (specification FeMN68Si18) in Ningxia last weekend was around 5,800-5,850 RMB/ton, with an average market price of 5,846.00 RMB/ton, a slight increase of 0.52% compared to the beginning of the week.

Influencing Factors

Supply Side: Some high-silicon mills in Inner Mongolia were expected to start new production capacity last week. Standard silicon mills are expected to begin production in the fourth quarter. Alloy production is expected to increase, not decrease. The actual production schedule remained to be seen. Factories in Ningxia were showing reasonable production enthusiasm. With significant hedging activity, some locked in profits of around 300-400 RMB/ton, with orders scheduled until late August or September.

Factory profits in southern China were slowly recovering. In Yunnan, factories were operating at a high rate, maintaining nearly normal production and maintaining acceptable profit margins. Guizhou Wanxin Manganese Industry Co., Ltd.'s Jinmeng Plant produced silicomanganese alloy iron using four 16,500 kVA silicomanganese alloy submerged arc furnaces, with a combined production capacity of 420 tons/day.

According to statistics, the national operating rate for silicomanganese enterprises last week was 43.43%, an increase of 1.25% from the previous week. Daily output averaged 27,975 tons, an increase of 715 tons.

According to incomplete statistics, as of July 18, the national inventory of silicomanganese enterprises was 161,500 tons, a decrease of 2,500 tons from the previous month. Among them, Inner Mongolia had 46,500 tons, a decrease of 1,500 tons from the previous month; Ningxia had 95,000 tons, unchanged; Guangxi had 5,500 tons, a decrease of 500 tons from the previous month; Guizhou had 6,000 tons, an increase of 1,000 tons from the previous month; Shanxi, Gansu, and Shaanxi had 3,500 tons, a decrease of 500 tons from the previous month; and Sichuan, Yunnan, and Chongqing had 5,000 tons, a decrease of 1,000 tons from the previous month.

Upstream cost side: The manganese ore market was driven by the strong sentiment of ferrous metal futures, and prices remained firm. The semi-carbonic acid price in Tianjin Port was around 35 RMB/ton degree, the South African high-speed rail was around 30 RMB/ton degree, and the Gabon was around 40 RMB/ton degree. The Australian block sub-index price was in the range of 40.5-41.5 RMB/ton degree.

As for the arrival at the port, the number of South African and oxide ores was still unchanged, and the number of Gabonese ores had eased slightly compared with June. The enthusiasm of downstream factories to start production was relatively high, and the supply and demand of manganese ore were both high. In the short term, the manganese ore market will remain relatively strong, and the price will fluctuate with the downstream futures price.

On the international market, Jupiter announced its September 2025 shipping price for South African manganese ore to China, with semi-carbonated lump from South Africa quoted at $4.05/ton, up $0.15/ton from the previous month. NMT also released its September 2025 price for South African semi-carbonated manganese ore to China, with semi-carbonated lump from South Africa quoted at $4.05/ton, up $0.15/ton from the previous round. UMK also increased its September price for semi-carbonated manganese ore from South Africa to China by $0.15/ton, to $4.05/ton.

On the demand side: Hesteel Group's August silicomanganese alloy tender inquiry price was 6,000 RMB/ton, up 150 RMB/ton from the purchase price in July; the tender quantity was 16,100 tons, a month-on-month increase of 1,500 tons. Among them: Tangshan Iron and Steel New Base 3,500 (+500) tons, Chengde Iron and Steel 3,500 (+500) tons, Wugang 3,000 (-) tons, Handan Iron and Steel 5,000 (+500) tons, Shijiazhuang Iron and Steel 400 (0) tons, and Zhangxuan High-Tech 700 (-) tons.

A Guangxi steel mill's latest tender price for silicomanganese alloy was finalized at 5,900 RMB/ton in cash for 9,500 tons. A Hunan steel mill's tender price for silicomanganese alloy was 6,100 RMB/ton for 4,000 tons, with acceptance tax included and a discount applied.

Relevant statistics showed that in late July 2025, the average daily crude steel output of major steel companies was 1.982 million tons, a 7.4% decrease from the previous ten-day period and an 8.7% decrease year-on-year.

Market outlook

Overall, manganese ore prices were fluctuating, with transaction prices stagnating. The fifth round of price increases for metallurgical coke had been implemented, providing strong cost support. Inner Mongolia's alloy production is expected to increase, but actual production is underway. Ningxia factories were showing decent production enthusiasm, with significant hedging activity, and profits were recovering slowly at southern mills. On the steel mill side, suppliers were temporarily maintaining strong price support, leading to relatively good steel prices. SunSirs predicts that the silicomanganese markets will remain volatile in the short term, pending policy changes and news on steel mill production controls.

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