India: Silico manganese export offers remain under pressure despite production cuts

• Imported manganese ore prices fall further w-o-w
  
  
• Raipur smelters shut down amid power tariff hikes
  
  

Indian silico manganese exporters experienced a w-o-w softening in export offers despite production cuts by smelters. This decline is attributed to limited inquiries from key overseas markets along with a decline in their bids.

BigMint's assessment on 29 July, 2024, indicated a decline in Indian silico manganese export prices. The SiMn 65-16 grade experienced a $23/t decline to $962/t FOB, while the SiMn 60-14 grade fell by $13/t to $832/t FOB (Haldia/Vizag). These declines further deepened the falling trend.

Confirmed deal

Market overview

Imported manganese ore prices fall w-o-w: The manganese ore market has experienced a downturn, with prices for key grades exhibiting a further downward trajectory. High-grade Gabonese ore (44% Mn) declined by $0.10/dmtu w-o-w to $9.1/dmtu, while South African lumps (Mn 37%) fell by $0.25/dmtu w-o-w to $4.65/dmtu.

This price softening can be attributed to a combination of factors:

• Reduced buyer appetite: A prevailing reluctance among buyers to commit to procurements at current price levels has contributed to the downward pressure on manganese ore prices.
  
  
• Limited demand for high-grade alloys: The specific impact on Gabonese high-grade ore prices suggests a decline in demand for high-grade manganese alloys from overseas, which is impacting overall market sentiments.
  
  
• Increased stockpiles: Rising stockpiles of South African ore at portside further indicate a slowdown in buying activity, reinforcing the downward price trend.
  
  

China's silico manganese prices slide on uncertainty: Silico manganese prices in China inched down w-o-w. Prices (Mn: 65%; Si: 17%) declined by RMB 100/t ($14/t) to RMB 6,610- 7,000/t ($911-$964/t) ex-works, including taxes. reflecting rising smelting costs, cautious downstream buying, and a weak futures market. This downturn is expected to impact Indian exports as well.

Near-term outlook

Indian silico manganese exporters face a challenging market with subdued demand and logistical issues. Limited buying from the Middle East, the UAE, Japan, and Europe, along with global container shortages and high freights, are expected to continue pressuring down export offers.

Additionally, a strike by steel mills and ferro alloys producers in Raipur and a 25% electricity tariff hike have severely impacted the industry. Nearly five manganese alloys players in Raipur, who account for 5-10% share in the region's total manganese alloys capacity, have opted for shutdown today, which has given temporary support to domestic offers. However, export offers are less likely to witness any significant upside in the near term, as per sources.