India: Silico manganese export offers stable amid limited port-side trade, enquiries

• Imported manganese ore prices stable w-o-w
  
  
• Jupiter lowers ore price for Oct'24 shipments
  
  
• Wary buyers, global price slump limit exports
  
  

Indian silico manganese export prices experienced a period of stability following the recent downturn. This trend can be attributed to limited trade at ports and lack of new export inquiries at the higher end of the price spectrum.

BigMint's assessments on 23 September, 2024, remained firm, with the 65-16 grade nearly steady at $906/t FOB, slightly down by $6/t w-o-w. The 60-14 category was stable with a minor dip of $2/t FOB w-o-w to $808/t FOB as sellers were forced to maintain the same rates due to limited demand for high-grade manganese alloys.

Global market update

Imported manganese ore prices stable: The imported manganese ore market in India witnessed a period of stability this week, with minor price adjustments. South African Mn37% remained steady at $3.9/dmtu, while other grades , including Mn44% from Gabon, was at $5.05/dmtu and Mn46% from Australia stood at $5.40/dmtu, both relatively stable w-o-w.

However, market activity has been subdued, characterised by a decrease in inquiries and purchase volumes. This trend among market participants reflects a cautious approach and has contributed to a decline in demand for manganese alloys from key regions such as Europe, the UAE, and Egypt.

Mixed signals, limited demand keep export prices stable: Global manganese alloys prices exhibited relative stability, characterised by a cautious approach to buying and a wait-and-see attitude among both domestic and international participants. Mixed signals regarding future price movements have influenced sentiments.

The recent decline in global silico manganese prices have further contributed to the subdued domestic market mood. Production cuts by 40-50% at several plants in major regions like Vizag, Raipur, and Durgapur led to a decline in supply in the spot market for manganese alloys. This reduced availability provided support to export prices, keeping these range-bound. Despite limited supply in certain segments, this confluence of factors prevented prices from escalating significantly.

Chinese silico manganese prices range-bound: Silico manganese prices in China remained largely stable this week, experiencing only a marginal drop due to sluggish demand in the ferro alloys market. Prices (Mn: 65%; Si: 17%) fell by RMB 80/t ($7/t) to RMB 5,860-6,230/t ($830-$883/t) exw, including taxes, amid lower-than-expected bidding activity by steel mills and weak factory sentiment. The manganese ore market also witnessed a decline in activity, with some low-price sales reported. Mixed sentiments and a wait-and-see approach among market participants led to limited overall transactions.

In the near term, the Chinese silico manganese market is anticipated to remain relatively stable. The focus will be on manufacturers' purchasing patterns, replenishment activities, and port destocking efforts.

Outlook

Indian silico manganese export offers are expected to remain range-bound in the near term. Further, the recent muted port-side trade may provide some downward pressure on export prices.

Jupiter Mines has reduced prices of its Mn36.5% semi-carbonate lump to $3.7/dmtu for October shipments, down from $3.9/dmtu in September. This reflects current market conditions and factors like global steel production and limited demand from manganese alloys producers.