SunSirs: Manufacturers Began Gradually Cutting Production, and the Silicomanganese Market Was Fluctuating at Elevated Levels

Price trend

The market has been trading within a volatile range, with trading dynamics heavily influenced by shifting geopolitical developments in the Middle East. Starting two weeks ago, reports emerged of production cuts at alloy plants; last week, factories in northern regions successively issued official announcements regarding production reductions, leading to expectations of a potential improvement in the supply-side balance for silicomanganese. According to data from the SunSirs Commodity Market Analysis System, market quotes for silicomanganese (specifications: FeMn68Si18) in the Ningxia region stood at approximately 6,120–6,200 RMB/ton at the end of last week. The average market price was 6,140.00 RMB/ton, representing a month-on-month decline of 0.23%.

Factor Analysis:

Supply Side: Last week, alloy plants in Inner Mongolia began to successively implement production cuts and maintenance shutdowns. A few facilities strictly adhered to a 30% production reduction plan; it is estimated that these cuts in the northern region will impact monthly output by over 100,000 tons. Additionally, some previously added production capacity has now come online; however, overall alloy production is trending downward. In Ningxia, alloy plants are also undergoing phased production cuts and maintenance; the full impact on output remains under close observation. Factory inventories remain relatively high, and a few facilities that have shifted from producing standard-grade silicon to high-grade silicon have not yet resumed normal tapping operations.

Southern Region: Operations at alloy plants in the South remained relatively stable as of April 3; major manufacturers had not announced any specific plans to cut production and continued to adopt a wait-and-see attitude. Meanwhile, the pace of production resumption at other facilities was somewhat slower, and the pressure stemming from electricity costs remained significant, with little room for a reduction in electricity rates expected in April.

To date, a total of 10 silicomanganese plants across Ningxia and Inner Mongolia have issued announcements regarding production suspensions or reductions; preliminary estimates indicate a combined daily output reduction of approximately 4,000 tons. According to industry sources, silicomanganese plants in Ningxia, Inner Mongolia, and southern regions are expected to continue issuing production reduction announcements in succession.

Ningxia Jixin Alloy Co., Ltd. has reduced production on one 31,500 KVA silicomanganese submerged arc furnace; Ningxia Tianyuan Special Steel Co., Ltd. has suspended operations on two 30,000 KVA silicomanganese submerged arc furnaces; Pingluo Wanshun Metallurgical & Chemical Co., Ltd. has completely halted production on all five of its silicomanganese submerged arc furnaces; and Ningxia Canjin Ningyuda Ferroalloy Co., Ltd. has reduced production on one 36,000 KVA silicomanganese submerged arc furnace as well as one 6,300 KVA ferromanganese refining furnace. Additionally, it is reported that, effective the night of March 31, Sunite Right Banner Xinmeng New Materials Co., Ltd. has reduced production on two 33,000 KVA silicomanganese alloy submerged arc furnaces.

According to statistics, the operating rate of silicomanganese enterprises nationwide stood at 31.1% this week—a decrease of 0.91% from the previous week—while the average daily output was 25,560 tons, down by 1,820 tons.

According to incomplete statistics, as of April 3, the total inventory held by silicomanganese enterprises nationwide stood at 371,800 tons—a month-on-month decrease of 1,000 tons. Specifically: Inner Mongolia recorded 59,300 tons (down 2,000 tons month-on-month); Ningxia, 295,000 tons (up 2,000 tons); Guangxi, 2,500 tons (down 500 tons); Guizhou, 1,000 tons (down 1,000 tons); Shanxi, Gansu, and Shaanxi combined, 4,500 tons (unchanged); and Sichuan, Yunnan, and Chongqing combined, 9,500 tons (up 500 tons).

Upstream Costs: Last week, spot manganese ore prices tracked fluctuations in downstream futures markets, maintaining an overall pattern of sideways volatility. Downstream buyers remained cautious in their procurement, while sentiment among traders was mixed; the earlier inclination to hold back inventory and prop up prices has cooled slightly among some participants—leading to an increased willingness to sell—yet other ore suppliers remain firm, refusing to sell at low prices. Overall, market activity remains driven primarily by immediate, essential demand, characterized by a standoff between buyers and sellers, with prices oscillating within a narrow range of ±0.5 RMB per ton-degree.

Data indicates that, at Tianjin Port, prices for Australian lump manganese ore are quoted at 46–49.5 RMB/MTU, semi-carbonate ore at 43.5–44.5 RMB/MTU, and Gabonese lump ore at 48–48.5 RMB/MTU; at Qinzhou Port, Australian lump manganese ore was quoted at 45.5 RMB/MTU, semi-carbonate ore at 39.5 RMB/MTU, and Gabonese lump ore at 44 RMB/MTU.

On the international front, Jupiter has released its manganese ore price quotes for China for May 2026; South African semi-carbonate lumps are quoted at $5.35 per dry metric ton unit, an increase of $0.60 per dry metric ton unit compared to the April quotes.

According to relevant reports, fuel prices in South Africa rose sharply effective April 1, 2026. This price adjustment was primarily driven by a surge in international oil prices—triggered by conflicts in the Middle East—and a weakening of the South African rand; notably, diesel prices reached an all-time high. As diesel serves as a critical input for both mining operations and transportation, this surge in its price will directly drive up mining extraction costs as well as inland transportation costs.

Regarding demand: A major steel mill in Hebei has announced a final price of 6,550 RMB/ton for its tender of 5,100 tons of silicomanganese; the previous inquiry price stood at 6,300 RMB/ton.

Major steel mills have begun successively submitting bids for silicomanganese. The latest tender prices for silicomanganese at several steel mills in East China have been settled in the range of 6,360–6,580 RMB/ton, while a steel mill in Southwest China has finalized its latest tender price for silicomanganese alloy at 6,300 RMB/ton (cash terms)—a month-on-month increase of 160 RMB/ton.

Market Outlook:

Overall, the spot market for silicomanganese is currently fluctuating within a narrow range. The outlook regarding steel mill procurement tenders has temporarily clarified, and downstream buyers have shown increased enthusiasm in their inquiries. In the production regions, output reduction measures have begun to be implemented; however, the actual extent to which these production cuts are being realized by factories in major producing areas over the short term remains a situation requiring continued monitoring. silicomanganese producers are displaying a strong reluctance to sell at low prices, and the pace of actual market transactions remains to be seen. SunSirs forecasts that, in the short term, the silicomanganese market will likely continue to trade at elevated levels, and the possibility of continued upward volatility cannot be ruled out.

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