SunSirs: Supply and Demand Were in a Tug-of-War, and Silicomanganese Prices Remained Strong

Price trend  

The silicomanganese market consolidated at a high level last week, with acceptable fundamentals and relatively dominant market sentiment. Manufacturers maintained strong price support, making it difficult to find low-priced goods. According to data from the SunSirs Commodity Market Analysis System, the market price of silicomanganese (specification FeMN68Si18) in Ningxia this weekend was around 5,800-5,900 RMB/ton, with an average price of 5,870.00 RMB/ton, a slight decrease of 0.17% compared to the beginning of the week.

Influencing factors

On the supply side: Last week’ previous week, one submerged arc furnace resumed production in Inner Mongolia, and another plant adjusted its production load, increasing daily output by 170 tons. Last week, factory operating rates remained relatively stable, with some plants that had previously undergone maintenance gradually increasing their capacity after resuming operations. New high-silicon silicomanganese production capacity is expected this month, while new general silicon production capacity is expected to be around October. Last week’ previous week, Ningxia saw an average daily output increase of 100 tons. Output gradually recovered after the resumption of one plant, returning to full capacity last week. Factory production activity remained healthy last week, with minimal fluctuations in operating rates. Manufacturers had significant hedging capacity, with some placing orders through late August and into September.

There had been a significant increase in Guizhou. A large factory officially ignited a furnace last week, and the next furnaces will resume production gradually. This will bring a significant increase in Guizhou's output. Another large factory also recently expressed plans to start furnaces, and some small factories had also resumed production, and the start-up rate continued to rise. The start-up rate in Yunnan had remained high throughout the flood season.

According to statistics, the operating rate of silicomanganese enterprises nationwide last week was 45.75%, a 2.32% increase from the previous week; the average daily output was 29,580 tons, an increase of 1,605 tons.

According to incomplete statistics, as of August 14, the national inventory of silicomanganese enterprises was 158,800 tons, a decrease of 2,700 tons from the previous month. Of this, inventory in Inner Mongolia was 46,000 tons, a decrease of 500 tons from the previous month; in Ningxia it was 95,000 tons, unchanged; in Guangxi it was 5,000 tons, a decrease of 500 tons from the previous month; in Guizhou it was 5,500 tons, a decrease of 500 tons from the previous month; in Shanxi, Gansu, and Shaanxi it was 3,300 tons, a decrease of 200 tons from the previous month; and in Sichuan, Yunnan, and Chongqing it was 4,000 tons, a decrease of 1,000 tons from the previous month.

Upstream cost side: Manganese ore prices remained volatile at a relatively high level recently, and the narrow fluctuations in the futures market had no obvious impact on manganese ore prices. Last week, manganese ore transaction activity had increased and prices had risen slightly, but the upstream and downstream were still stalemate. From the perspective of supply by variety, South African China Iron and CML Australian blocks were concentrated and prices were relatively firm.

Data shows that as of August 15, the price of Australian manganese ore in Tianjin Port was 41.5-42.5 RMB/ton degree, semi-carbonate manganese ore was 35 RMB/ton degree, and Gabon lump was 40.5-41 RMB/ton degree; the price of Australian manganese ore in Qinzhou Port was 40.5-42 RMB/ton degree, semi-carbonate manganese ore was 37.5-38 RMB/ton degree, and Gabon lump was 40-40.5 RMB/ton degree.

On the demand side, Hebei Iron and Steel Group set the price of silicomanganese alloy at 6,200 RMB/ton in August, with the first round of inquiries at 6,000 RMB/ton, a 350 RMB/ton increase from the purchase price in July. The tender volume was 16,100 tons, a month-on-month increase of 1,500 tons. Among them: Tangshan Iron and Steel's new base received 3,500 (+500) tons, Chengde Iron and Steel received 3,500 (+500) tons, Wugang received 3,000 (-) tons, Handan Iron and Steel received 5,000 (+500) tons, Shijiazhuang Iron and Steel received 400 (0) tons, and Zhangxuan High-Tech received 700 (-) tons.

A steel mill in Jiangxi Province was bidding for silicomanganese alloy at 6,180 RMB/ton for 3,600 tons, with acceptance tax included and a discount. A steel mill in Zhejiang Province was bidding for silicomanganese alloy at 6,122 RMB/ton for 1,000 tons, with acceptance tax included and a discount.

Relevant statistics showed that in early August 2025, the average daily crude steel output of key steel companies was 2.074 million tons, a 4.7% increase from the previous ten-day period and a 3.6% increase from the same ten-day period of last year.

Future outlook:

Overall, with the market at a high level during this period and a new round of rigid demand gradually being released, silicomanganese enterprises were mainly placing orders, and the pressure on shipments had been relatively reduced. The difficulty in extracting manganese ore at low prices and the cumulative increase in coke prices over several rounds led to a relatively strong overall cost situation, giving manufacturers the motivation to raise prices. SunSirs predicts that the silicomanganese market may continue to fluctuate and wait and see in the short term. At the same time, it is necessary to pay attention to the game between the supply increase brought about by the resumption of silicomanganese production and the actual downstream demand in the "Golden September and Silver October" period.

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