India: Silico manganese export prices hit over 2-month low in recent deals

• Hike in freight rates amid geopolitical tensions limit export bookings
  
  
• Exports face competitive headwinds from overseas countries
  
  

Indian silico manganese export offers plunged by $35/t w-o-w as limited global trade and persistent container shortages continued to weigh on export activity and prices this week. Export prices have hit over 2-month low as per data maintained with BigMint.

BigMint's assessments on 1 July, 2024, showed a mixed trend, with the 65-16 grade (SiMn 65-16) touching $1,115/tonne (t) FOB, down by $51/t FOB while the 60-14 grade declined by a steeper $70/t to $955/t FOB. Major producers in Vizag and Raipur were forced to maintain their silico manganese 65-16 grade almost flat at an FOB range of $1,120-$1,135/t, due to limited demand for the material in export market.

Confirmed deal (w-o-w)

Sudden container crunch sends ocean freight rates soaring: India's silico manganese export trade is grappling with a confluence of challenges as peak shipping season (June-July) commenced. A global container capacity crunch has resulted in a 50-60% surge in freight spot rates from Indian port over the past few weeks, reaching $20-25/t compared to the previous range of $7-10/t ($190-270/ container). This rise, especially for shipments to Southeast Asia, is affecting export inquiries for bulk volumes, which previously averaged 5,000-8,000 tonnes (t)/month.

Further exacerbating the situation are ongoing global container shortages. Bad weather delays in Asia, coupled with a rise in Chinese exports and the implementation of South American tariffs, have contributed to a scarcity of empty containers. This translates to higher shipping costs and potential delays for exporters across various industries, including silico manganese.

Exports prices struggle to compete in global market: Indian silico manganese exporters faced stiff competition from overseas suppliers like Zambia, offering lower prices (e.g., Zambia's $1,050/t FOB for 65-16 grade) and potentially benefiting from geographical proximity to key markets. This could lead to reduced Indian export volumes and downward pressure on domestic prices.

China silico manganese prices hold steady amid subdued demand: Chinese silico manganese prices edged down ($ 14/t) amid stable imported ore prices and production resumption in some regions. However, factories remained cautious due to fluctuating costs and slowing downstream demand. Similarly, high-cost concerns are leading smelters to withdraw high-grade offers. This cautiousness, along with subdued steel demand, could influence Indian silico manganese prices in the near term. Monitoring downstream trends and ore prices are essential.

Outlook

Indian silico manganese export prices face an uncertain near term due to weak demand and container shortages. Price hikes are unlikely until these challenges ease.