India: Silico manganese export market remains quiet with range-bound prices

• Smelters are caught in the crossfire of imported ore price fluctuations
  
  
• Global miner cuts prices for August, September 2024 shipments
  
  

Indian silico manganese export offers have remained stable despite weak global demand, indicating a strategic pricing approach by domestic producers. According to BigMint's assessment on 20 August, 2024, prices of all grades have remained unchanged. The SiMn 65-16 high-grade is steady at $961/tonne (t) FOB Haldia/Vizag, while the 60-14 low-grade saw a slight decline of $3/t w-o-w, now at $825/t FOB Haldia/Vizag. Overall, prices have stayed largely stable. Major silico manganese producers in Vizag and Raipur have kept their 65-16 grade prices within a narrow FOB range of $960-$965/t due to ongoing weak overseas demand. A trader commented, "Some inquiries are coming in, but few have translated into actual deals."

Confirmed deal

Market overview:

Fall in imported manganese ore prices: While a decrease in imported manganese ore prices from major exporting countries has provided some relief for production costs, the high-priced ore already in stock has created pressure for smelters to renegotiate recent deals. Buyers are pushing for significant discounts in response to the sharp drop in ore prices, but smelters have largely held firm on their pricing, resisting major concessions.

Manganese ore prices across all major grades have fallen sharply, hitting new lows in several months. Australian and Gabonese high-grade ore prices have each dropped by over $2.90/dmtu, while South African lump ore prices have reached their lowest levels since March 2024. This decline is likely due to reduced demand for lower-grade manganese alloys.

Global miners slash offers: UMK and Jupiter Mines have reduced their August shipment offers. UMK's 36% grade semi-carbonate lump is now priced at $3.80 per dmtu CIF China, while Jupiter's high-grade 36.5% semi-carbonate lump is offered at $3.90 per dmtu. Eramet Comilog has also lowered its September 2024 prices for Gabonese ore to approximately $6/dmtu CNF China.

China's silico manganese prices continue to decline w-o-w: Silico manganese prices in China have continued to decline w-o-w. Prices of 65% Mn, 17% Si grade have fallen by RMB 100/t ($14/t) to a range of RMB 6,160-6,550/t ($862-$926/t) ex-works, including taxes. This downtrend is largely driven by the broader slump in the ferro alloy market. Factory quotations showed lack of enthusiasm, and many purchasing traders remained cautious about the market's future outlook.

Outlook

Indian silico manganese export prices could experience downward pressure in the near term due to a combination of falling ore prices and cautious buying behaviour from overseas markets. This may prompt exporters to lower their prices for upcoming contracts.