India: Domestic silico manganese faces price pressure amid weak steel demand

• Market uncertainty limits large-scale purchases
  
  
• Indian export offers for silico manganese decline
  
  

Domestic silico manganese prices dipped this week, as steel mills, facing pressure due to weak demand, adopted a cautious approach to procurement.

According to BigMint's assessments, on 22 October 2024, prices slid by INR 1,000-1,300/tonne (t) ($12-16/t) w-o-w to INR 68,100-68,300/t ($811-813/t) exw in key regions such as Durgapur, Raipur, and Vizag. The premium 60-15 grade was available in Durgapur and Raipur at approximately INR 69,500-70,000/t ($826-832/t) exw.

The slowdown in silico manganese was also compounded by market uncertainty and limited export demand. However, stable offers for imported ore supported prices to a certain degree.

Confirmed deals (as per BigMint)

Market overview

Moderate demand, limited inquiries pressure domestic prices: Domestic steel mills adopted a strategic approach to silico manganese procurement, carefully balancing their raw material requirements with prevailing market uncertainties. With the softening of the steel market, demand for silicon manganese tempered, and inquiries became limited. Additionally, the imported manganese ore market witnessed slight fluctuations, which generated caution among buyers. Delays in deal conclusion also dragged down prices.

The imported manganese ore market remained largely stable, with high-grade ore prices from Australia and Gabon up by $0.05/dry metric tonne unit (dmtu) w-o-w, while South African lumps held steady at $3.85/dmtu, with limited deals at $3.6/dmtu CNF India.

Indian steel prices decline w-o-w: The Indian domestic steel market experienced a w-o-w decline in prices due to moderate demand and limited inquiries for bulk bookings. BigMint's daily steel billet index stood at INR 39,650/t exw-Raipur on 23 October 2024, a decrease of INR 1,600/t compared to the previous week. With steel prices falling steadily, a cautious approach was adopted among silico manganese buyers, who were hesitant to commit to large-scale purchases.

Export prices drop amid weak demand: Indian silico manganese export prices declined by approximately $6/t w-o-w, primarily driven by a weakening demand environment.

As assessed on 21 October 2024, BigMint observed a downward trend in prices: the 65-16 grade decreased by $6/t to $930/t FOB, while the 60-14 variant fell by $5/t to $841/t FOB. Amid limited buying interest, major producers in Vizag and Raipur were forced to maintain relatively stable prices for 65-16 grade, within a range of $940-$950/t FOB. Overseas buyers, including those from the United Arab Emirates, Italy, and Japan, actively sought discounted prices for 65-16 grade silico manganese, targeting a range of $900-910/t FOB India. Following negotiations between smelters and buyers, there was a modest w-o-w decline in offers.

Outlook

Indian silico manganese prices may experience a modest decline in the near term due to cautious consumption by steel mills and a dearth of export inquiries. Furthermore, delays in finalising deals are exerting additional downward pressure on prices.