India: Silico manganese export prices drop $10/t w-o-w amid limited trade activity

• Global surplus weighs on export prices
  
  
• Cautious buyer sentiment moderates Chinese market
  
  

Indian silico manganese export offers inched down w-o-w, with deals closed at higher prices due to weak global demand and oversupply. This competitive market environment has put pressure on exporters to offer more competitive prices.

As per BigMint's assessment on 25 November 2024, the silico manganese market remains under pressure, with prices continuing to decline $10/t w-o-w. 65-16 grade edged down by $13/t to $877t FOB (an 11-month low, the same price level was seen on 19 December'23), while the 60-14 variant inched down by $6/t w-o-w to $792/t FOB. Higher offers for 65-16 did not find acceptance, and sellers were compelled to reduce their offers down to $870-885/t FOB.

Confirmed deal (as per BigMint)

Market Overview

Intense global competition: Overseas traders, particularly from China, were aggressively offering silico manganese at competitive prices, typically around $750-760/t FOB China. This aggressive pricing strategy has forced Indian exporters to reduce their prices to maintain market competitiveness.

Additionally, the presence of traders in the UAE holding bulk material at lower prices has further intensified competition in the global silico manganese market. These traders are offering more competitive prices, putting additional pressure on Indian exporters.

Weak steel demand from importing countries: Subdued demand for steel, especially in key markets like Europe and the Middle East, has negatively impacted the demand for silico manganese.

A global surplus of silico manganese in China, combined with regional trade dynamics and weak demand, has intensified the downward pressure on prices.

The decline in Japan's crude steel production by 7.8% year-over-year in October 2024 has compounded these issues. As a major importer of Indian silico manganese, Japan's reduced demand has further impacted export prices.

Additionally, Indian silico manganese exporters are facing a challenging environment due to these factors. Some exporters have been forced to reduce their prices to match global market levels. Others, with higher production costs, have opted to temporarily halt exports to maintain profitability.

Outlook

Given the current market dynamics, with intense competition, weak demand, and oversupply, Indian silico manganese export prices are likely to remain under pressure in the near term. To maintain competitiveness, Indian exporters may need to continue adjusting their pricing strategies or explore alternative markets. However, any significant price recovery in the short term seems unlikely.