India: Silico manganese export prices edge up on rising overseas inquiries, limited supplies

• Smelters implement maintenance and production cuts
  
  
• Export prices set to climb amid material scarcity
  
  

The Indian silico manganese export market has witnessed upward pressure on prices this week due to limited supply and rising demand for immediate deliveries. This favourable market environment enabled producers to increase their prices.

According to BigMint's assessments on 6 January 2025, the 60-14 grade stood at $835/t FOB, up $11/t w-o-w, and the 65-16 variant was assessed at $935/t FOB, up $16/t w-o-w. Some major producers in Vizag and Raipur were even offering 65-16, ex-Vizag/Haldia, at $940-$950/t FOB.

Confirmed deals (as per BigMint)

Market overview

Smelters raise offers amid rising overseas inquiries: Indian smelters and exporters have been raising their tags in response to increasing inquiries and demand from overseas markets. To navigate market uncertainty, smelters are strategically managing their production volumes.

Inquiries from key SE nations and Egypt for around 15,000t for February 2025 deliveries have significantly boosted market sentiment and supported higher prices.

Production cuts by some Vizag-based players - Rising manganese ore prices and high electricity costs have significantly impacted production, especially in Vizag, a major manganese alloys hub with an annual output of around 1 million tonnes and proximity to port facilities.

Currently, the power tariff in Vizag is approximately INR 7.85/unit ($0.095/unit), which has heavily affected production volumes. In response, many smelters are implementing planned maintenance to mitigate losses, and some smaller plants have temporarily halted production. This situation has created a substantial supply gap in the Vizag region.

Chinese silico manganese prices hold steady: Chinese silico manganese (Mn: 65%, Si: 17%) prices remained unchanged w-o-w at RMB 6,030-6,430/t ($823-$877/t) exw, including taxes. The market for silico manganese exhibited stability, influenced by cautious sentiment and waning demand, coupled with limited quotations from factories.

In the manganese ore market, performance was generally stable, although some transactions occurred at lower price points. With prevailing cautious market sentiment, participants adopted a wait-and-see approach, leading to slower trading activity. Despite these factors, the cost support for silico manganese remained solid, ensuring price stability in the face of fluctuating demand.

Outlook

Indian silico manganese export prices are expected to rise in the near term due to anticipated bulk enquiries from Europe and Southeast Asia, coupled with rising alloys prices and limited supply. However, how long these price hikes will sustain will hinge on evolving market dynamics and the resolution of underlying supply constraints.