India: Silico manganese export prices remain firm w-o-w amid global challenges

• Imported manganese ore prices remain largely stable
  
  
• Rupee depreciation erodes profits of Indian exporters
  
  

The Indian silico manganese export market remained stable this week despite a challenging global scenario, following a persistent downtrend that lasted for over a month. This stability can be attributed to limited trade activity at ports and a lack of demand at higher rates.

BigMint's assessments on 2 December 2024 showed firm prices w-o-w. The 65-16 grade edged up by $3/tonne (t) to $880/t FOB, while the 60-14 variant recorded a marginal drop of $2/t to $790/t FOB.

Confirmed deal (as per BigMint)

Market updates

Ore prices remain stable amid tepid demand: Imported manganese ore prices remained stable this week, with minor adjustments. Australian Mn46% ore held steady w-o-w at $4.35/dmtu, while Gabonese Mn44% and South African Mn37% grades edged up by $0.05/dmtu w-o-w.

MOIL announced domestic ferro-grade ore prices for December dispatches. It cut rates for ores with a manganese content of 44% and above by 3% and raised prices by 3% for grades below 44%, SMGR 30%, SMGR 25%, and fines.

Bid-offer disparities emerge: Amid a cautious market marked by limited transactions, bid-offer disparities emerged due to subdued demand from regions such as Turkiye, the UAE, and Egypt. Major producers in Vizag and Raipur offered 65-16 at a range of $890-$910/t FOB. While buyers pushed for lower prices, of around $850/t FOB Haldia/Vizag, sellers held firm.

Depreciating rupee weighs on Indian exporters: The recent depreciation of the rupee to a historic low of INR 84.6 against the US dollar has significantly impacted the competitiveness of Indian exporters. The increased cost of imported raw materials, particularly manganese ore, has eroded profit margins and forced exporters to adopt a more aggressive pricing strategy.

This development, coupled with subdued global demand and increased supply, has created a challenging environment for Indian suppliers.

Chinese prices inch up w-o-w: Chinese silico manganese (Mn: 65%, Si: 17%) prices inched up by RMB 10/t ($1/t) w-o-w to RMB 6,200-6,600/t ($852-$897/t) exw, including taxes, amid cautious sentiment. Steel mills' bids were steady, but overall demand remained subdued, limiting market activity.

Outlook

The global economic slowdown and weakening demand have led to an uncertain outlook. While smelters are hoping to boost exports before the holiday season, overall market sentiment remains cautious.

Price fluctuations are expected in the near term, influenced by factors such as global economic conditions, steel production levels, and changing demand dynamics.