India: Domestic silico manganese prices remain stable w-o-w, smelters halt discounts

• Key smelters booked through Feb'25, traders short on stocks

  
  
  

• Power tariff cut in Chhattisgarh unlikely to lift output costs
  
  

India's domestic prices of 60-14 grade silico manganese were range-bound w-o-w at INR 69,600-70,700/t ($806-819/t) exw, as per BigMint's assessment. Some smelters in Raipur offered material at slightly higher levels of INR 70,500-71,000/t ($815-$826/t) exw, largely stable w-o-w.

The premium 60-15 grade stood firm w-o-w at INR 72,000-73,500/t ($834-$851/t) exw in both Durgapur and Raipur.

Confirmed deals (as per BigMint)

Market review

Domestic smelters keep offers steady, refrain from further discounts: Domestic smelters maintained steady offers w-o-w, refraining from offering further discounts on materials, as major global miners have lifted manganese ore prices, which has significantly increased smelters' production costs. Traders also grappled with limited inventory, which left them with little flexibility to provide discounts. Moreover, key smelters are booked through February 2025 and are hesitant to engage in retail sales or offer discounted prices. This combination of rising costs and constrained supply led to stable pricing, as smelters prioritised securing their margins in a tightening market.

Chhattisgarh govt cuts electricity tariffs, minimal impact on production costs: The Chhattisgarh government announced a reduction of INR 1 per unit on electricity tariffs, which was approximately INR 7.65/unit. Following this adjustment, the commercial rate for the industrial sector in Chhattisgarh stood at around INR 6.65/unit. However, sources indicate that this tariff reduction is unlikely to have a significant impact on smelters operating in the area and will not drive up manganese alloys production costs.

Export prices edge up amid supply shortages: Silico manganese export prices rose slightly this week, following a period of relative stability. This uptrend is attributed to ongoing supply shortages in the market, which are supporting higher prices despite need-based demand. According to BigMint's assessment on 21 January 2025, prices of the 65-16 grade in the export market were recorded at $940/t FOB, reflecting an increase of $8/t w-o-w. Similarly, the 60-14 variant rose by $6/t w-o-w to $841/t FOB.

Outlook

Domestic silico manganese prices may see an uptick in the near term, driven by the expected strengthening of steel tags. However, price movements will predominantly be influenced by supply and demand dynamics, as well as tags of imported manganese ore.