India's silico manganese exports see price uptick amid higher ore costs

• Supply constraints drive up prices of high-grade manganese ore
  
  
• Robust activity boosts export market amid rising inquiries
  
  

Indian silico manganese export prices have increased this week due to rising ore prices and increased demand from overseas.

BigMint's assessment on 3 February 2025 revealed that export prices for the 65-16 grade reached $955 per tonne (t) FOB, reflecting a $10/t increase w-o-w. Simultaneously, the 60-14 variant saw an increase of $15/t w-o-w, settling at $855/t FOB.

Confirmed deals (asper BigMint)

Factors supporting prices

Imported, domestic manganese ore prices climb: The rising costs of both imported and domestic manganese ore have exerted additional pressure on production costs for silico manganese. Recently, imported manganese ore prices have experienced a slight uptick due to increasing manganese alloys prices and moderate demand. Notably, Australian high-grade (46% Mn) ore saw a price increase of $0.18/dmtu, reaching $4.79/dmtu, attributed to supply constraints. Gabonese high-grade (44% Mn) ore also edged up by $0.02/dmtu to $4.48/dmtu, reflecting higher production and handling costs. Meanwhile, South African lumps (37% Mn) remained stable at around $4.22/dmtu. Despite these increases, there is limited upward price movement anticipated due to adequate supply of low-grade ore available with smelters.

On the domestic front, MOIL, a key Indian ore producer, announced a price hike for manganese ore effective 1 February, 2025. Grades above 44% saw a 3.5% increase, while prices of grades below 44% were raised by 8.2% m-o-m. Additionally, prices for all SMGR (Mn 30%, Mn 25%, and Mn 20%) and fines grades were raised by 8.2%.

High-priced deals establish new benchmark rate for export price: Rising inquiries from Japan, Italy, Turkiye, and Egypt, along with high-priced deals concluded at around $950/t FOB Haldia for around 1,200-1,500 t last week, have established a new benchmark rate for the Indian export market, contributing to an increase in export prices. This surge in demand reflects confidence among buyers in securing material, enabling producers to capitalise on favourable market conditions. As a result, the pricing landscape for Indian exports has shifted upward, bolstered by robust activity and the willingness of buyers to engage at elevated price levels.

Outlook

Based on current market trends, the outlook for silico manganese export prices in the near term is positive. The rise in raw material costs and the recovery in demand are expected to drive prices upward. This trend is likely to continue as buyers are willing to engage at higher price levels, and producers capitalise on favourable market conditions.