HBIS Raises October Manganese Alloy Tender Prices Amid Rising Steel Demand and Production Costs

Price Increases Reflect Rising Steel Output and Alloy Feedstock Costs
Hebei Iron and Steel (HBIS) has raised its tender prices for manganese alloys in October, driven by increased steel production and rising feedstock costs. The price for 12,000 tonnes of silico-manganese (65/17 grade) has been set at 6,200 yuan per tonne ($871), a 220 yuan increase from September. HBIS has also increased its purchase volume by 1,500 tonnes. Alloy producers are anticipating further price hikes, with projections for the silico-manganese bulk alloy to rise to 6,300 yuan per tonne due to higher production costs, which now range between 6,100-6,200 yuan per tonne.

Steel Production and Export Surge Fuel Alloy Price Increases
The uptick in manganese alloy prices coincides with a surge in steel demand. China’s steel output increased by 1.3% in late September, as mills ramped up production in response to rising demand. Crude steel production reached an average of 2.01 million tonnes per day during this period, as reported by the China Iron and Steel Association (CISA). Additionally, China’s steel exports saw a 26% year-on-year increase in September, reaching 10.15 million tonnes, driven by strong overseas demand and favorable export prices. These factors have supported the rise in alloy feedstock prices.

Spot Market and Price Trends for Manganese Alloys
In the spot market, prices for silico-manganese 65/17 grade have increased to 5,800-5,900 yuan per tonne ex-works in mid-October, with some producers offering prices between 6,000-6,200 yuan per tonne. Similarly, the price for high-carbon ferro-manganese (65% grade) remains stable at 6,500-6,700 yuan per tonne ex-works, though demand has been cautious, with some buyers reluctant to engage at these levels.