India: Silico manganese export market under pressure amid delayed inquiries, global disruptions

• Export market faces headwinds on limited inquiries
  
  
• Low grade imported manganese ore prices fall slightly
  
  

Indian silico manganese export offers dropped by around $16/tonne (t) w-o-w due to limited trade and container shortages in the global market.

BigMint's assessment on 12 August 2024 revealed a mixed trend: the 65-16 grade (SiMn 65-16) fell by $14/t to $963/t FOB, while the 60-14 variety saw a sharper decline of $16/t to $828/t FOB. Major producers in Vizag and Raipur were compelled to keep their silico manganese 65-16 grade prices nearly flat, within an FOB range of $960-$970/t, owing to weak overseas demand.

Confirmed deal

Global market updates

Exports hit by delayed inquiries, global disruptions: The Indian silico manganese export market continued to face significant challenges. Delayed purchase inquiries from key markets, including the UAE, Europe, Japan, and Bangladesh, have severely impacted export volumes. In Europe, a crucial market for Indian exporters, buying activity has been slow to resume following the summer holidays. Meanwhile, ongoing protests and civil unrest in Bangladesh have further disrupted trade flows. These factors have collectively created a difficult environment for Indian exporters.

Reduced demand for low-grade alloys pulls down manganese ore prices: The manganese ore market has experienced a downward correction, with South African lumps (Mn 37%) hitting a five-month low of $4.3/dmtu, a decline of $0.15/dmtu. In contrast, Australian and Gabonese high-grade ores (Mn 46% and 44%, respectively) have remained relatively stable. However, the overall market sentiment is marked by subdued demand for lower-grade manganese alloys, which has contributed to the decline in silico manganese export prices from India. Furthermore, the ongoing weakness in the steel sector and its related industries has likely exerted additional pressure on silico manganese prices.

China's silico manganese market down w-o-w: China's silico manganese market has experienced a further decline this week, with prices dropping by RMB 300/t ($42/t) to RMB 6,260-6,650/t ($872-$926/t) ex-works, including taxes. This downward trend can be attributed to the overall weakness in the ferroalloy market.

Outlook

Indian silico manganese export prices are expected to face downward pressure in the near term. The current uncertain market sentiment, combined with subdued demand from overseas markets, is likely to contribute to this decline.