India: Silico manganese export prices drop in recent deals

• Export market witnesses limited trades
  
  
• INR depreciates to 84.08 against USD
  
  

Indian silico manganese export offers declined by approximately $12/tonne (t) w-o-w due to limited trade activity and global challenges.

BigMint's assessment on 28 October 2024 revealed a mixed trend: the 65-16 grade (SiMn 65-16) fell by $7/t to $923/t FOB, while the 60-14 variety saw a sharp decline of $18/t to settle at $823/t FOB. Major producers in Vizag and Raipur were compelled to keep their 65-16 grade prices nearly flat, within an FOB range of $930-$945/t, owing to lower asking rate.

Global market updates

Exporters battle weak global demand, price erosion: Indian silico manganese export prices have been pressured by lower asking prices from global buyers due to uncertain steel market conditions and need-based procurement. Overseas buyers are pushing for lower prices, seeking a $20-25/t discount on FOB Vizag/Haldia rates from current price levels. This, coupled with reduced demand from key regions and supply constraints, has created a challenging environment for Indian exporters.

Additionally, delayed inquiries from key markets, including the UAE, Europe, and Bangladesh, have sharply impacted export volumes. Slow post-summer demand in Europe and civil unrest in Bangladesh add to the challenging landscape for Indian exporters.

However, some inquiries were recently heard from Japanese mills and deals have been concluded by eastern India-based traders.

China's silico manganese market remains firm: The Chinese silico manganese market has remained stable this week, with a cautious approach prevailing among market participants. Prices for 65% Mn and 17% Si grades remained unchanged at RMB 6,010-6,410/t ($843-$899/t) exw, including taxes. Downstream demand for silico manganese remains weak, with futures prices trending downward and industry players exercising caution. As it is the traditional off-season, alloy consumption has remained low.

INR depreciates steeply against USD - The Indian rupee has depreciated against the US dollar and is currently trading at 84 versus 83.7 a month ago. Some market participants opine that currency depreciation may benefit exporters. But since the market is not much active, no solid benefit has been derived from INR depreciation.

Outlook

Indian silico manganese export prices are expected to decline in the near term due to prevailing market uncertainty and subdued overseas demand. However, production cuts by Indian smelters may offer some support to prices.