India: Silico manganese export prices rise on higher costs, improved market sentiments

• Rising raw material costs fuel silico manganese export prices
  
  
• Surge in inquiries for bulk bookings support prices
  
  

Indian silico manganese export prices were on a strong upward trend, spurred by a combination of reasons including raw material costs and escalating export demand.

According to BigMint's assessments on 16 April, 2024, the 60-14 grade was evaluated at $849/t FOB, up by $34/t over the previous week, and the 65-16 grade was assessed at $943/t FOB, up $27/t. Indian producers were confident in their silico manganese offerings and expected price hikes in the short term.

Confirmed deals

Global market observations this week

Escalating imported manganese ore prices: A critical factor driving the price increase is the recent improvement in the outlook for imported manganese ore prices. High-grade ore prices have witnessed a substantial 12% w-o-w upswing. Australian origin 46% grade ore reached $5.3/dmtu, while Gabonese 44% grade ore climbed to $5.1/dmtu. Escalating production expenses, material handling charges, and supply constraints caused by post-cyclone production stoppages in Australia are driving a surge in manganese ore prices. Additionally, concerns regarding potential supply disruptions due to rail maintenance in Gabon and the increased costs associated with alternative road transport are further contributing to the upward pressure on raw material costs for silico manganese production.

Improved inquiries in exports: Bolstering the price rise in a positive outlook for Indian silico manganese exports, Indian smelters are maintaining firm pricing in response to a surge in inquiries from key markets such as the UAE, Egypt, and Europe. Bulk booking activity from these regions has provided an additional support, and producers are optimistic about finalising additional deals based on the increasing overseas interest. In recent bulk deals of around 700-1000 t of silico manganese (grade 65-16) which was booked around $940-960/t FOB Haldia, which has given a standard rate for the future deals.

Stagnant Chinese market: In stark contrast to the Indian market's dynamism, China's silico manganese market remained stagnant with limited trade activity. Prices held steady w-o-w at RMB 5,900/t - 6,100/t ($815/t-$843/t) ex-works, reflecting a subdued market environment with some producers curtailing production.

Outlook

A prominent exporter based in Vizag anticipates potential export price hikes of $20-30/t FOB for both silico manganese grades. This upward revision reflects the limited flexibility producers have in reducing prices given the current cost pressures. Additionally, the exporter expects a continuation of strong bulk inquiry activity from the export market, further bolstering their price outlook.

Silico manganese prices might rise in the near future due to higher manganese ore prices. Prices may rise further as the market anticipates increased demand for bulk exports. In the short term, we must continue to monitor the increase in high-priced transactions in the market, as well as changes in the supply-demand link for silico manganese.