India: Silico manganese export prices inch up on increased inquiries, production cuts

The prices of silicon manganese exports in India have inched up this week following an increase in import queries from major importing nations such as Italy, the CIS, and European countries last week. In the current market, the spot price of silico manganese is almost constant, and there is a small impasse between suppliers and purchasers. Also, production cuts by some players in central and southern India have kept supplies tight.

According to SteelMint's assessments on 8 December, prices for the 60-14 grade were $761/t FOB, remained unchanged w-o-w, and $859/t FOB, up $9/t FOB w-o-w. In addition, a few major producers in Vizag and Raipur are seen offering $870-$890 FOB( for SiMn 65-16 grade) Vizag/Haldia instead of accepting retail orders at lower prices owing to high production cost.

Global Market observations this week

Imported manganese ore prices remain under pressure: Prices of imported manganese ore Mn: 37-46% remained moderate this week, driven by a lack of inquiries from key importing inquiries, which forced sellers to keep the prices in same range. Prices of Mn37% were assessed at $3.7/dmtu, however high-grade manganese ore has bit of upside from last week which has no impact on manganese alloys. Where, Mn44% at $4.3/dmtu, and Mn46% at $4.65/dmtu. All prices are CIF India. As overall global demand and prices followed a cautious move, manganese ore prices remained unchanged.

China market scenario exhibits mixed sentiments: Silico manganese prices in China diminished this week by RMB 100/t ($14/t) w-o-w as there were production cuts in few factories and cautious purchasing from buyer side. Domestic silico manganese (Mn: 65%) acceptance offers were at RMB 6,360-6,460/t ($885-$899/t). All prices are exw, including tax. The silico manganese market remained mediocre wherein prices slightly fell due to the vigilant market outlook. The supply of silico manganese stayed enervated, and some factories even curtailed their production.

However, silico manganese futures for February 2024 deliveries on China's Zhengzhou Commodity Exchange (ZCE) increased by RMB 53/t ($7/t) w-o-w to RMB 6,470/t ($901/t) on 11 December, 2023.

Outlook
In terms of downstream demand, the prices of raw materials have little influence on increase in prices of silico manganese, and steel mill bidding remains healthy in the near term. Meanwhile, industry participants continued to foresee increased demand as steel recruitment progresses, and manganese alloy producers are currently more ready to raise prices.