India: Silico manganese export prices remain rangebound in absence of firm trades

• Buyers cautious, portside activity remains limited
  
  
• Eramet, South 32 cut manganese ore prices for Nov'24
  
  

The Indian silicomanganese export market has experienced a period of price stability, primarily due to cautious buying behaviour and limited demand from both domestic and international markets. Despite a recent uptick in prices, the market has returned to a more stable level, reflecting reduced trade activity at ports and a lack of new export inquiries at higher rates.

BigMint's assessments on 14 October, 2024, were largely stable, with the 65-16 grade prices keeping stable with a minor decline of $3/t w-o-w, remained steady at $935/t FOB and the 60-14 grade stood at $847/tonne (t) FOB, with minor fall of $4/t w-o-w. Major producers in Vizag and Raipur kept the SiMn 65-16 grade available at a FOB range of $940-$950/t, as sellers were forced to maintain the same rates. Inquiries of silico manganese remained subdued across the grade amid fluctuating prices for imported ore.

Global market update

Cautious buyers, weak global demand: Export prices have experienced a period of stability, primarily driven by cautious buying behaviour, despite minor adjustments in imported ore prices in recent weeks. The overall market sentiment remains subdued, characterized by a decrease in inquiries and purchase volumes in manganese alloys.

Key regions such as Europe, facing scarcity of power and rising inflation, have reduced their consumption of silico manganese, hindering deal finalization and creating a challenging environment for producers.

To mitigate potential losses and maintain price stability, key producers in Raipur, Vizag, and Durgapur have strategically reduced output by up to 50%. Additionally, the limited availability of material from certain producers has further constrained supply, supporting the market's resilience.

Imported ore prices drop amid subdued demand: The imported manganese ore market has witnessed a declined last week after period of stability, with minor price fluctuations observed in high grades. Prices for South African Mn37% remained stable at $3.85/dmtu, dropped by $0.05/dmtu w-o-w, while Gabonese Mn44% and Australian Mn46% grades experienced slight decline of $1/dmtu each on weekly basis.

Chinese silico manganese prices inch down w-o-w: Chinese silico manganese market inched down amid slow market movements following the Golden Week holidays. Prices (Mn: 65%; Si: 17%) inched down by RMB 90/t ($13/t) to RMB 6,100-6,500/t ($861-$917/t) exw, including taxes. Weak steel demand and financial pressures have led to a decline in silico manganese prices. Some sellers were forced to sell at lower prices, contributing to the downward trend.

Outlook

While export demand may experience fluctuations, the recent decline in manganese ore prices could exert downward pressure on overall market dynamics.

Additionally, Eramet Comilog and South32 Ltd, prominent global manganese ore exporters, have recently announced price reductions for their November shipments to China. The decline might impact the Indian silico manganese export prices.

Eramet Comilog has decreased the prices of its 44.5% Mn Gabonese lumps and 43% Mn Gabonese chips by $1.05/dmtu each. South32 Ltd has also lowered the price of its 37% South African manganese ore lumps by $0.30/dmtu. All prices are CIF China.