India: Domestic silico manganese prices inch up w-o-w; market awaits MOIL price revision

• Domestic smelters feel the pinch as imported ore offers rise
  
  
• Rising steel prices anchor silico manganese prices
  
  

Domestic silico manganese prices have experienced slightly up amid growing concerns over the global supply of imported manganese ore and ore prices has slightly up on w-o-w. Also, rising steel prices are also contributing to a upward trend to the domestic market.

According to BigMint's assessment on 29 January 2025, India's domestic prices of 60-14 grade silico manganese inched by INR 300/t ($4/t) w-o-w ranging at around INR 69,800-70,800/t ($806-819/t) exw, as per BigMint's assessment. Some smelters in Raipur and Vizag offered material at slightly higher levels of INR 70,500-71,000/t ($815-$826/t) exw, while few deals were reported on the higher side as well.

The premium 60-15 grade stood firm w-o-w at INR 72,500-73,500/t ($837-$850/t) exw in both Durgapur and Raipur.

Confirmed deals (as per BigMint)

Market review

Smelters struggle as manganese ore shipments dwindle: Domestic smelters in India are facing challenges due to a reduction in manganese ore production by overseas miners and limited shipments to India. A key importer from Durgapur reported that the allotment of Gabonese ore has reduced to one shipment per month from the previous three, each around 50,000 t. This has pressured sellers to maintain prices and keep the offer robust amidst ore supply concerns. Last week week, imported manganese ore prices have risen slightly despite limited movement in manganese alloys. Australian high-grade ore: Australian high-grade (46% Mn) ore witnessed an increase of $0.07/dmtu to $4.61/dmtu. Gabonese high-grade ore: Prices of Gabonese high-grade (44% Mn) ore edged up by $0.06/dmtu to $4.46/dmtu.

Export prices hold steady amid subdued market activity: Indian export prices for silico manganese remained stable week-over-week amid low market activity and modest demand. BigMint's assessment on January 27, 2025, showed the 65-16 grade at $944/tonne FOB (up by $4/t w-o-w) and the 60-14 grade at $840/tonne FOB (down by $1/t w-o-w). While Japan's demand remained sluggish, routine inquiries came from MENA, the UAE, Taiwan, and Indonesia. No bulk deals were observed, reflecting limited market activity. South African-origin manganese ore prices edged up to $4.37/dmtu, which could raise production costs and potentially increase export offers in the upcoming week.

Billet prices increase w-o-w: BigMint's daily steel billet index was assessed at INR 39,700 /t ($461/t) exw-Raipur on 29 January 2025, up by INR 1,000/t w-o-w. Moderate buying activity in both semi-finished and finished steel segments supported steel prices, which in turn uplifted the domestic silico manganese prices. This slight uptrend is crucial for silico manganese, a key alloying element in steel production.

Outlook

With rising prices of imported ore and concerns over high-grade ore availability, domestic silico manganese prices are expected to increase slightly in the near term. The market is also awaiting MOIL's February 2025 offerings for ore and steel mills' demand, which will mostly impact domestic prices given the price fluctuations.

Additionally, sources indicate a likely rise in manganese alloys prices in the near term is anticipated. High-grade imported manganese ore prices, particularly for the 44% Gabonese grade, are expected to reach $5/dmtu by mid-February 2025.