India: Domestic silico manganese prices remain steady in recent deals

• Stability in imported manganese ore prices
  
  
• Falling domestic billet prices keep bids of silico manganese under pressure
  
  
• Material pricing was aggressively negotiated and haggled over by buyers
  
  

Indian silico manganese prices remained stable this week amidst range-bound movement in steel offers. Material supply constraints and improved export inquiries helped to maintain price stability. Since raw material costs have demonstrated a consistent trend, domestic consumers were active on a need basis, considering the uncertain market for steel pricing. The pricing situation remained stable, owing to the ongoing supply-demand gap.

According to SteelMint's assessment, silico manganese prices in Raipur were INR 64,300/t exw ($770/t), which remained consistent week after week. Meanwhile, Vizag's pricing remained unchanged on a weekly basis at INR 65,000/t exw ($779/t). Producers' offers in Durgapur stayed constant at INR 64,200/t exw ($770/t) w-o-w.

Factors keeping prices stable

Steady manganese ore prices for the last 3 weeks: Manganese ore import prices have remained stable over the last three weeks, owing to low demand from manganese alloy manufacturers. One of the biggest ore importers informed SteelMint that smelters have abundant manganese ore stocks at their domestic mills, which could potentially be sufficient for the manufacturing process for the next three months. However, a 20-30% reduction in domestic production has constrained the supply of silico manganese in the domestic market, allowing manganese alloys prices to remain stable.

As per prices assessment of SteelMint South African-origin manganese ore lumps of grade Mn 37% are currently priced at $3.75/dmtu CNF India.

Indian silico manganese export prices remain range-bound- Silico manganese prices remained steady this week due to modest portside trade conversion. According to SteelMint's assessments on 15 January 2024, the 60-14 grade was assessed at $803/t FOB, stable w-o-w, and the 65-16 grade was rated at $902/t FOB, up by $5/t w-o-w.

Domestic steel prices remain under pressure: The market has been slow due to lack of demand for long steel and fluctuating raw material prices. This week, Indian semis prices remained rangebound, as finished steel demand in major regions remained inadequate. Domestic billet prices in some key markets declined by INR 100-550/t. SteelMint's domestic steel billet index was assessed at INR 3,9600/t exw-Raipur on 17 January 2024, down by INR 350/t w-o-w.

Outlook

The silico manganese market is expected to remain stable in the near term. However, producers keep anticipating growing demand and are optimistic about the market's future. In the immediate term, we need to monitor upon trade growth as well as changes in the supply and demand relationship for silicon manganese.