The Silicomanganese spot market fluctuated in China amid the cost support and subdued demand. The production dynamics in China showed mixed trends. In Northern China, the cost of production in Inner Mongolia increase and Ningxia aimed for more production cuts. In southern China, Guizhou implemented some production cuts while Yunnan began to increased its production.
Northern China's production remained steady while both production cuts and resumptions occurred in southern China: In Inner Mongolia, the production remained generally stable with some producers maintained production cuts due to the elevated cost. Inner Mongolia's June electricity tariff settlement is about to be published which is expected to be adjusted upward. The pressure on the cost continued to increase. The June electricity tariff settlement in Ningxia are expected to increased by Yuan 0.02/kWh. The Silicomanganese production cost remained at the elevated level with severe margin losses which increased the Output-cut inclination among the producers. In Guizhou, the output decreased slightly due to two furnaces have been turned into maintenance within two weeks. The Yunnan producers took advantage of the wet season power tariff discount to resume production, thus the output in Yunnan are expected to increase.
The manganese ore market holds steady, with low price offers easing and steady transactions: At Tianjin Port, semi carbonate spot prices were offered at RMB 36.5/dmtu (USD 5.38/dmtu), while South African high fe was priced at RMB 30–30.5/dmtu (USD 4.42–4.49/dmtu). Gabonese lump stood at RMB 40.5/dmtu (USD 5.96/dmtu), South32 Australian lump was priced around RMB 39.5/dmtu (USD 5.82/dmtu), and CML Australian lump was offered at RMB 43/dmtu (USD 6.33/dmtu). At Qinzhou Port, manganese ore prices showed mixed movements, influenced by inventory patterns. Due to typhoons and adverse weather conditions, port off takes were limited. Australian fines prices remained relatively firm, with high grade quotes at RMB 38–38.5/dmtu (USD 5.60–5.67/dmtu) and semi carbonate at RMB 36.8–37/dmtu (USD 5.42–5.45/dmtu). South African high fe prices, however, remained mixed and uneven.
HBIS Group's July 2026 silicomanganese procurement volume is set at 15,400 tonnes, unchanged from June 2026 (July 2025 volume was 14,600 tonnes). The initial inquiry price for July 2026 was set at Yuan 5,900/t (USD 869/t), compared to the June 2026 final tender price of Yuan 5,980/t (USD 881/t) and July 2025's tender price of Yuan 5,850/t (USD 862/t). In other steel tenders, a steel group priced its silicomanganese tenders at Yuan 5,860/t (USD 863/t) for Hubei province, Yuan 5,920/t (USD 872/t) for Guangdong Yunfu, and Yuan 5,990/t (USD 882/t) for Guangdong Heyuan, all on a cash, tax inclusive delivered to plant basis.
In summary, the silicomanganese market is expected to remain narrowly rangebound and volatile due to high power tariffs in Inner Mongolia and Ningxia, while output cuts are likely to keep production costs at an elevated level. However, prices remain under pressure from high manganese ore portside inventories, lower steel mill profit margins, and weak demand in July.
Written by David Liu, liuhoude@mysteel.com
