India: Silico manganese export prices remain firm on limited trade

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

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

BigMint's assessments on 11 June, 2024, remained firm, with the 65-16 grade prices keeping steady at $1,230/t FOB and the 60-14 grade remained stable with a minor decline of $7/t FOB at $1,115/tonne (t) FOB. Major producers in Vizag and Raipur kept the SiMn 65-16 grade available at a FOB range of $1,230-$1,240/t, as sellers were forced to maintain the same rates due to limited demand of high-quality manganese alloys and rising prices for imported ore.

Global market update

Imported manganese ore prices stable: Prices of imported manganese ore (Mn37-46%) remained sturdy this week. Prices of Mn37% (South Africa origin) inched up by $0.1/dmtu to $6.55/dmtu; Mn44% from Gabon stood at $8.45/dmtu ; while Mn46% of Australian origin stood at $9/dmtu. All prices are CIF India. The imported manganese ore market has seen a stagnant week characterised by a decrease in inquiries and purchase volumes. Market participants are exhibiting a lack of buying interest, which is hindering deal finalisation and leading to a subsequent decline in demand for manganese alloys from key regions like Europe, the UAE, Egypt, and global steel producers.

Cautious buyers, weak global demand: Buyers in both the local and export markets adopted a cautious stance as a result of mixed indications regarding export pricing. This prevented prices from rising above their existing levels while overall demand remained subdued. The decline in silico manganese prices worldwide due to bearish trends also had an impact on Indian pricing. Due to limited purchases at higher offers, domestic silico manganese prices were also depressed.

Chinese silico manganese prices remain range-bound: Chinese silico manganese prices decreased by RMB 300/t ($41/t) as the market functioned cautiously. Spot prices of silico manganese (60-14) hovered around RMB 8,200-8,400/t ($1,131-1,159/t) ex-works and inclusive of taxes. The challenge of restarting silico manganese production persisted among producers because to concerns about increased smelting prices and cautious downstream purchases. However, factory sentiments to support prices have increasingly improved as market supply and demand dynamics have strengthened the silico manganese market's stability.

Outlook

The Indian silico manganese market faces a balancing act. Export demand could push prices up, while limited port inquiries and downstream market stability create countervailing forces. Close monitoring of global demand, port inventories, and steel production are crucial for navigating this uncertainty.