India: Silico manganese export prices edge down by $7/t w-o-w amid tepid demand, oversupply

• Indian exporters face price pressure from global rivals
  
  
• South32, Eramet Comilog hike Mn ore offers for Jan'25

  
  
  

Indian silico manganese exporters were forced to reduce their offers this week, due to a combination of factors, including weak global demand and oversupply in the market.

As per BigMint's assessment on 9 December 2024, the export market remained under pressure, with prices declining by $7/tonne (t) w-o-w. The 65-16 grade decreased by $9/t to $875/t FOB, while the 60-14 variant inched down by $5/t w-o-w to $781/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

Global pricing pressure impacts export market: Indian silico manganese exporters faced stiff competition from Brazil, Canada, and Norway, which offered 65-16 at $820-845/t FOB amid high inventories. This aggressive pricing pressured Indian suppliers, impacting margins and market share, and pushed them to reduce offers to stay competitive.

Additionally, as per sources, India's exports faced weak demand, as European interest waned and Southeast Asian buyers turned to cheaper Chinese supplies. Smelters may cut prices or halt production to cope with the slowdown.

Chinese tags remain stable w-o-w: Chinese silico manganese (Mn: 65%, Si: 17%) prices declined slightly by RMB 60/t ($8/t) w-o-w to RMB 6,140-6,540/t ($844-$898/t) exw, including taxes.

While some steel mills initiated bidding processes for material, overall demand remained weak. This subdued demand, coupled with cautious market sentiments, resulted in limited purchasing activity and overall sluggish conditions.

Outlook

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

Additionally, South32 raised manganese ore lump prices by $0.25/dry metric tonne unit (dmtu) m-o-m to $4.05/dmtu CIF China for January 2025. Meanwhile, Eramet Comilog set January 2025 manganese ore lump prices at $4.10/dmtu and chip tags at $3.90/dmtu CIF China, both up $0.15/dmtu m-o-m.

These price hikes could support silico manganese tags.