India: Silico manganese export prices remain supported w-o-w in recent deals

• Prices firm amid supply crunch, high production costs
  
  
• Recent fluctuations in freight rates a temporary phenomenon
  
  

Silico manganese prices maintained stability this week, sustained by moderate portside trade activity and robust inquiries from international buyers, including those in Japan and Vietnam.

However, upward price movements were countered by ongoing challenges related to container shortages and shipment delays. As a result, prices remained largely unchanged.

According to SteelMint's assessments on 13 February 2024, the 60-14 grade was assessed at $837/t FOB, steady w-o-w, and the 65-16 grade was rated at $935/t FOB, unchanged w-o-w.

Furthermore, some major producers in Vizag and Raipur were still offering SiMn 65-16 grade Vizag/Haldia at FOB of $935-$940/t.

Weekly confirmed deal

Global market this week

Export prices steady: Silico manganese prices remained constant this week despite persistent production cuts by key manufacturers in Vizag, Durgapur, and Raipur, which have reduced supply in the spot market. On the one hand, higher raw material costs like coking coal and imported manganese ore, coupled with rising production expenses, exert upward pressure on prices. Thus, silico manganese prices have remained reasonably steady due to a "cascade effect" in which selling pressure balances cost pressures.

Freight volatility hinders shipment: Shipments of silico manganese to Europe have been delayed due to recent changes in freight pricing, particularly the spike in "panic charges" brought on by the Red Sea disaster.

One of the leading smelters and exporters notified steel that the "panic charges," which have been cut by $150-200 per container and are currently priced between $2,700 and $3,500 per container, have relieved buyers and sellers. However, we are unable to absorb these substantial changes in ocean freight because of the tiny profit margins on which we operate, therefore week-over-week FOB costs from Haldi/Vizag, Indian Port, stay unchanged.

Outlook

Tight supply and raw material cost concerns indicate a potential increase in silico manganese prices. Despite these concerns, sellers remain optimistic about demand prospects. Notably, the European region and other major importing countries around the world continue to show positive indications.