Cautious overseas market keeps Indian manganese alloys export prices stable

• Imported manganese ore prices stable except South African-origin
  
  
• Cautious buyers and global prices slump limit exports
  
  

Indian silico manganese export prices have experienced a period of stability following a recent downturn. This stabilisation can be attributed to limited trade activity at ports and lack of new export inquiries at high price levels.

BigMint's assessments on 5 August, 2024, remained firm, with the 65-16 grade prices holding steady at $977/t FOB, slightly up by $15/t w-o-w, and the 60-14 grade remaining stable with a minor increase of $12/t FOB at $844/t FOB as sellers were forced to maintain the same rates due to limited demand of high-grade manganese alloys and rising prices for imported ore.

"Market is quiet in absence of firm deals and buying inquiries from overseas traditional markets," highlighted a trader.

Confirmed deals

Global market update

Imported manganese ore prices stable: The imported manganese ore market has experienced a period of stability this week, with minor price adjustments. While South African Mn37% grades saw a slight decline of $0.20/dmtu to $4.45/dmtu, other grades, including Mn44% from Gabon and Mn46% from Australia, maintained relatively steady prices at $8.10/dmtu and $9.7/dmtu respectively (CIF India).

Market activity has been subdued, characterised by a decrease in inquiries and purchase volumes. This lack of buying interest among market participants is indicative of a cautious approach and has consequently led to a decline in demand for manganese alloys from key regions such as Europe, the UAE, and Egypt.

Mixed signals and limited demand keep export prices stable: Manganese alloys export market has exhibited a period of price stability amid a backdrop of cautious buying behaviour. Both domestic and export markets have adopted a wait-and-see approach, influenced by mixed signals regarding future price movements. The decline in global silico manganese prices has further contributed to the subdued domestic market sentiment. This confluence of factors has prevented prices from escalating despite limited supply in certain segments.

Chinese silico manganese prices remain range-bound: Silico manganese prices in China diminished w-o-w. Prices (Mn: 65%; Si: 17%) declined by RMB 200/t ($28/t) to RMB 6,410- 6,800/t ($898-$953/t) ex-works, including taxes. Prices took a downturn amid weakening market sentiment and a softening futures market. The manganese ore market experienced subdued activity, characterised by some low-price sales. Mixed market sentiments and a cautious, wait-and-see approach led to minimum transactions overall. In the near term, market consolidation is anticipated, with attention on manufacturers' purchasing patterns, replenishment activities, and port destocking efforts.

Outlook

The Indian silico manganese export prices are expected to exhibit a range-bound price trajectory in the near term. While a potential resurgence in export demand from Europe could exert upward pressure on prices, the current landscape, characterised by subdued domestic demand and limited port activity, is likely to counteract such upward momentum.

A key exporter from Vizag informed BigMint that potential price increases for Indian silico manganese are due to temporary furnace shutdowns in Zambia (which produces around 20,000 t of silico manganese monthly) caused by electricity shortages and limited supply from other origins. Higher manganese ore costs and anticipated demand from Europe in mid-August could further support this uptrend.