India: Silico manganese export prices inch down on subdued demand

• Liquidity constraints, steel sector slowdown weigh on export prices
  
  
• Imported manganese ore prices stable amid price adjustments
  
  

Indian silico manganese export offers dropped by around $15/t w-o-w amid muted trade from overseas on declining consumption from key importing countries.

BigMint's assessment on 2 September 2024 revealed a downward trend: the 65-16 grade (SiMn 65-16) fell by $24/t to $930/t FOB, reaching a five-month low, while the 60-14 grade dropped $5/t to $820/t FOB. Major producers in Vizag and Raipur were compelled to keep their silico manganese 65-16 grade prices nearly flat, within an FOB range of $940-$950/t, owing to weak overseas demand.

Confirmed deal

Market overview

Middle East, Japan cut steel production: The Indian silico manganese export market has been significantly impacted by declining demand from key importing nations. A reduction in crude steel production in the Middle East and Japan, coupled with liquidity constraints in other regions, has led to a decrease in overall consumption.

Specifically, data indicates:

• A 10% y-o-y decrease in Middle Eastern crude steel production during July 2024.
  
  
• A 4% y-o-y decline in Japanese crude steel production for the same period.
  
  

These developments have posed substantial challenges for Indian silico manganese exporters.

High-grade manganese ore prices witness minor correction: The imported manganese ore market has experienced a stability on weekly basis. High-grade ores from Australia and Gabon have seen slight price decreases, while South African lumps have remained stable at a low level. However, the overall market sentiment is subdued due to weak demand for manganese alloys. This has contributed to a decline in silico manganese export prices from India.

Chinese silico manganese prices defy market trend: Silico manganese prices remained relatively stable during the past week, despite a persistent downturn in the ferro alloys market. Prices for silico manganese with a 65% manganese and 17% silicon content increased marginally by RMB 50/t ($7/t) w-o-w to RMB 6,070-6,450/t ($854-$907/t) ex-works, including taxes.

Outlook

Given the current market dynamics, silico manganese export prices are likely to fluctuate based on the level of export inquiries. Close monitoring of imported ore prices and global export demand will be crucial in predicting future price trends.