India: Domestic silico manganese market demonstrates resilience amid delayed bookings

• Domestic mills adopt wait-and-see approach
  
  
• Some smelters face higher production costs
  
  

The Indian domestic silico manganese market has shown remarkable price stability in recent weeks, even amid delayed booking activity by steel mills. This stability highlights the market's underlying resilience, despite the challenges posed by a subdued demand environment.

According to BigMint's assessment, the price range of silico manganese (60-14) in India remained firm compared to the previous assessment on 20 August, 2024. As of 27 August, prices were within the range of INR 68,000-68,450/tonne ex-works ($810-816/t) in the major markets of Durgapur, Raipur, and Vizag.

The premium grade of silico manganese (60-15) was available in Durgapur and Raipur at approximately INR 70,000-70,500/t ($833-840/t) exw.

Confirmed deals (as per BigMint)

Market overview

Cautious buying in domestic market: The Indian silico manganese market is currently subdued, characterised by limited demand and cautious buying behaviour. Several factors are contributing to this situation:

• Weak steel market: The ongoing weakness in the finished steel market, coupled with concerns about potential price declines, has prompted steel mills to adopt a cautious, wait-and-see approach to procurement.
  
  
• Stable prices despite reduced buying: The cautious market sentiment, along with declining manganese ore prices, has resulted in reduced buying activity for silico manganese, contributing to overall price stability. Despite this, BigMint's billet index recorded a slight decrease of INR 650/t, settling at INR 38,600/t ex-works Raipur on 28 August.
  
  
• Manganese ore price fluctuations: The recent decline in imported manganese ore prices has offered some relief to silico manganese producers by potentially reducing production costs. However, the full impact on market dynamics remains uncertain.
  
  

Smelters face higher production costs: Some smelters are still facing higher production costs due to expensive manganese ore inventories purchased at higher prices. This has helped maintain price stability, despite strategic production adjustments and recent drops in steel prices. The market continued to be sensitive to fluctuations in demand, raw material costs, and global economic conditions.

Export prices remain steady w-o-w: Indian silico manganese export prices have stabilised following a recent decline. Reduced port activity and limited new export demand at higher prices have contributed to this stabilisation. As of 27 August, BigMint's assessments showed the 65-16 grade price steady at $958/t FOB, while the 60-14 grade price remained stable at $830/t FOB.

Outlook

The Indian silico manganese market is expected to experience a near-term price decline due to delayed contract finalisations by steel mills. The market is keenly awaiting MOIL Limited's announcement of ore prices for September 2024, as these prices will significantly impact the future trajectory of silico manganese prices.