India: Silico manganese export offers soften w-o-w on subdued demand

• Limited port activity, competing offers impact prices
  
  
• Weaker imported manganese ore prices play spoilsport
  
  

Indian silico manganese exports offers witnessed a slight dip w-o-w. Reduced port activity and competitive offers from other origins exerted pressure, contributing to the slight decline.

BigMint's assessments on 17 June, 2024, showed a mixed trend, with the 65-16 grade (SiMn 65-16) touching $1,220/tonne (t) FOB, down by $10/t FOB while the 60-14 variety declined by a steeper $43/t FOB to $1,072/t FOB. Major producers in Vizag and Raipur were forced to maintain their silico manganese 65-16 grade almost flat at an FOB range of $1,210-$1,220/t, due to limited demand for the material.

Confirmed deal

Market overview

Competitive offers from other origins: The downward trend on Indian silico manganese export prices was likely fuelled by pressure from alternative suppliers from Norway and Poland who offered SiMn 65-16 at a significantly lower $1,160-1,180/t FOB to Egypt and Europe. The ongoing summer holidays in Europe have further dampened demand for Indian silico manganese.

Imported manganese ore prices slide on buyer resistance: The manganese ore market has witnessed a softening in prices due to prevailing reluctance among buyers to commit procurements at current price levels. Reduced demand for high-grade manganese alloys has specifically impacted the price of Gabonese high-grade (44% Mn) ore, which has fallen by $0.05/dmtu to $8.40/dmtu.

South African lumps Mn 37% grades have also experienced a price decline of $0.20/dmtu to $6.35/dmtu. This suggests that upward price movements are likely to be limited in the near future, with demand primarily driven by immediate needs rather than long-term strategies in silico manganese.

China's silico manganese prices slide on uncertainty: Spot silico manganese prices in China tumbled this week due to market jitters. Prices (tax-inclusive) fell by RMB 200/t w-o-w to RMB 8,000-8,300/t, 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 exports prices might face a potential decline. Reduced port activity, muted downstream demand, and competitive pricing may exert pressure on prices. Monitoring global demand, port inventories, and steel production is vital. European summer holidays may exacerbate the weakness.