India: Silico manganese export prices remain firm on limited trade

• Buyers cautious, port-side activity remains limited
  
  
• Some Indian smelters cut production amid low demand
  
  

This week saw stability in export prices of silico manganese. This trend was influenced by the producers' continued supply of existing orders and modest portside trade activity. Also, the market lacked new demand, which kept prices stable.

BigMint's assessments on 18 March, 2024, reflected this stability, with the 60-14 grade remaining unchanged at $815/tonne (t) FOB and 65-16 holding steady at $912/t FOB. Major producers in Vizag and Raipur continued to offer the SiMn 65-16 grade at a FOB range of $912-$915/t.

Weekly confirmed deal

Global market update

Buyers cautious: 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.

Weak global demand: The decline in silico manganese prices worldwide due to bearish trends also had an impact on Indian pricing. Divergent views limited demand for silico manganese in both domestic and foreign markets. Due to limited purchases at higher offers, domestic silico manganese prices were also depressed.

Reduced production amid limited demand: In response to a moderate demand for high grade silico manganese (65-16), some smelters in the Vizag area reduced their output of manganese alloys. This move was made to balance supply and demand and maintain stable prices. In addition, some silico-manganese manufacturers in a key region decreased their output by 20-30% to maintain viability in the face of surplus supply.

Chinese silico manganese market stable: Chinese silico manganese prices were unchanged this week as poor negotiations and production cuts caused the market to stay firm. Prices were at around RMB 6,110/t to 6,210/t ($849/t-$863/t). All prices were ex-works and inclusive of taxes.

Outlook

Downstream market stability suggests that prices may hold steady for the time being. Increased stockpiles at Indian ports could exert downward pressure on prices if trade activities are hampered by high freight costs. This would create an excess supply in the local market. However, sellers remain optimistic about demand from Europe and Southeast Asia.