India: Silico manganese export prices inch down on muted inquiries

• Fewer overseas inquiries lead to price reductions

  
  
  

• Low demand forces Indian producers to adjust plans

  
  
  

Silico manganese export prices remained under pressure w-o-w amid a subdued market and lack of inquiries from buyers.

BigMint's assessment on 16 September 2024 showed a falling trend: 65-16 grade SiMn edged down by $16/tonne (t) w-o-w to $912/t FOB, while the 60-14 grade dropped $5/t w-o-w to $810/t FOB. The downward trajectory in the export market was due to persistent lacklustre demand, because of which producers in key regions were compelled to reduce prices.

Confirmed deals

Market overview

Ports witness soft demand and rising stockpiles: Global buyers have reduced their procurements amid market uncertainty and weak demand, leading to a decline in activity in the export scene. Sources informed BigMint that a major European port has ample stocks of SiMn 65-16, which are now being distributed domestically, leading to a lack of demand. Similarly, Japanese buyers have stopped inquiries due to the decline in steel demand.

Dull market forces Indian producers to reconsider output: Major producers in India have either stopped silico manganese production or cut down on their yields owing to the poor demand in the domestic as well as global markets. The lack of overseas inquiries has emerged as a significant concern.

Manganese ore prices decline w-o-w: Prices of imported manganese ore (Mn 37-46%) decreased w-o-w. Mn44% from Gabon was down by $1/dry metric tonne unit (dmtu) to $5.05/dmtu, while Mn46% from Australia was down by $1.05/dmtu to $5.4/dmtu CIF India. Mn37% from South Africa also declined by $0.1/dmtu to $3.9/dmtu.

Supply constraints due to reduced production in India have limited the availability of alternative sources for silico manganese globally. Some Indian exporters are committed to long-term contracts until October 2024, including price clauses or minimum purchase quantities, which may offer some stability to export prices.

Chinese silico manganese market holds steady w-o-w: Silico manganese prices in China remained relatively stable this week, trading within a narrow range of RMB 5,940-6,320/t ($837-$891/t) exw, including taxes. However, a slight decline of RMB 30/t ($4/t) was observed. Smelters in China remained hesitant about future production. Prices might slightly rebound as manganese ore inventories decrease.

Outlook

Looking at the current market scenario, it is anticipated that Indian silico manganese export prices will experience a downward trend in the near term.

However, it is important to keep an eye out for significant changes in imported manganese ore prices and global demand.