India: Silico manganese export prices inch down on limited deals

Prices for Indian silico manganese were constant w-o-w, with a $5/t decline for the 60-14 grade and a 1% drop ($4/t) for the 65-16 grade. Prices remained practically steady due to minimal trading activity, with buyers asking for a lower price of roughly $820/t FOB Vizag/Haldia for 65 grade, while low grade 60-14 silico manganese received some inquiries. There were also competing prices from Malaysia and China, which pushed buyers to bargain hard, but sellers were unable to cut prices due to the high cost of production, therefore prices stayed practically unchanged.

As per SteelMint's assessment on 11 November, prices for the 60-14 grade stood at $771/t FOB and for the 65-16 grade, it was $857/t FOB.

Furthermore, low-cost deals in manganese alloys, as well as need-based purchasing from steel mills globally, have largely influenced silico manganese export prices in India. Particularly in CIS nations and Japan, which are key importing countries of silico manganese from India have reduced volumes in the past few months.

Weekly confirmed deals

Market observations this week

Global market scenario: Silico manganese (65-17) prices in China remained stable w-o-w at RMB 6,500/t ($894/t). The silico manganese market in China has been functioning at a low level, with a comparatively empty trade environment. The price of steel has decreased recently, traders have been more cautious in their dealings for manganese alloys, and the market's supply liquidity is also weak.

Market participants in Europe, the CIS nation, and Japan also delayed bulk purchasing material as demand remained weak in the global market for steels which kept the silico manganese prices nearly stable.

Decrease in China's ZCE futures prices: Silico manganese futures for Feb 2024 deliveries on China's Zhengzhou Commodity Exchange (ZCE) decreased by RMB 36/t ($5/t) w-o-w to RMB 6,716/t ($921/t) on 14 November, 2023.

Domestic manufacturer's ongoing maintenance shutdowns: There was a strong sentiment towards steel price reductions, manganese alloy sellers were cautious in their operations, and market supply liquidity was low. Coupled with an increase in production costs domestically, factory expenses have increased amid the reduced cash flow due to elections and the festive season in the domestic market. Production excitement was limited and maintenance has begun in certain key producing regions, in tandem with an increase in domestic production costs. The prices of silico manganese remained largely unaltered as a result.

Outlook

Silico manganese export prices will fluctuate in the near future since domestic manufacturers have begun maintenance in a few places owing to uncertain markets. However, industry participants continue to anticipate increased demand, and inquiries from importing countries are projected to increase in the near future, and suppliers are currently more motivated to raise prices. In the short term, we must continue to observe the market's development of low-priced transactions.