India: Silico manganese export prices remain firm despite limited demand

• Imported manganese ore prices stable despite sluggish sentiment
  
  
• Buyers cautious, port-side activity remains limited
  
  

India's silico manganese export prices found temporary stability after a recent decline. This reflects limited trade activity at ports and a lack of new export demand at higher rates.

BigMint's assessments on 26 August, 2024, remained firm, with the 65-16 grade prices keeping stable with a minor decline of $6/t steady at $954/t FOB and the 60-14 grade remained stable at $825/tonne (t) FOB. Major producers in Vizag and Raipur kept the SiMn 65-16 grade available at a FOB range of $960-$970/t, as sellers were forced to maintain the same rates due to limited demand of silico manganese across the grade amid fluctuating prices for imported ore.

Confirmed deals

Global market update

Imported ore prices stable amid subdued demand: The imported manganese ore market has witnessed a period of stability this week, with minor price fluctuations observed in high grades. Prices for South African Mn37% remained unchanged at $4.00/dmtu, while Gabonese Mn44% and Australian Mn46% grades experienced slight increases of $0.05/dmtu each.

Despite these minor adjustments, the overall market sentiment remains cautious, characterized by a decrease in inquiries and purchase volumes. This subdued demand from key regions such as Europe, the UAE, and Egypt is hindering deal finalization and creating a challenging environment for manganese alloy producers.

Cautious buyers, weak global demand: The Indian silico manganese export market experienced a period of price stability, primarily due to cautious buying behavior and limited demand from both domestic and export markets. Despite a recent decline in imported manganese ore prices, the overall market sentiment remains subdued. Key producers in Raipur, Vizag, and Durgapur have strategically reduced output by 30-40% to mitigate potential losses and maintain price stability. The recent uptick in steel prices has further supported this trend. These combined factors have contributed to the resilience of the export silico manganese market in the face of external pressures.

Chinese silico manganese prices inches down w-o-w: Silico manganese prices continued its downtrend w-o-w. Prices (Mn: 65%; Si: 17%) dropped by RMB 140/tonne ($20/t) to RMB 6,020- 6,410/t ($845-$900/t) ex-works, including taxes. Prices fell this week due to weak demand, cautious buying, and stable manganese ore prices. Some producers are destocking, and limited steel mill purchases contribute to the downturn. The market is expected to remain stagnant in the short term.

Outlook

Subdued demand and logistical challenges are impacting Indian silico manganese exports. Export prices are likely to decline. Closely monitor global demand, port activity, and steel production for informed decisions.