India: Silico manganese export prices steady as buyers delay bulk bookings

India's silico manganese export prices remained steady w-o-w due to decreasing demand in bulk from key importing countries like the UAE, Italy, Japan (which account for roughly 30% of silico manganese purchases from India on an average) and another overseas market. As per SteelMint's assessment, prices for the 60-14 grade stood at $809/t FOB, unchanged w-o-w, approaching a three-month low, and $892/t FOB for the 65-16 grade, which stayed stable w-o-w, a two-month low has been reached in the pricing of higher-grade of silico manganese.

Market highlights:

Imported manganese ore market remains flat: The imported manganese ore market remained flat this week, which was offered at roughly 3.75/dmtu for Mn 37% and Mn 46% at 4.75/dmtu CNF Vizag/Haldia, kept the pricing of silico manganese in India stable. Meanwhile, at the Zhengzhou Commodity Exchange (ZCE), silico manganese futures contracts for November delivery dipped slightly by RMB 198/t ($27/t) w-o-w, closing at RMB 6,684/t ($914/t) on 16 October, reflecting prevailing weak market sentiments. This downturn also helped maintain the stability of India's export prices.

Confirmed deals

China's silico manganese market contracts due to low demand: In China, the prices of silico manganese fell by RMB 50/t ($7/t), hovering between RMB 6,740/t and RMB 6,840/t ($923-$937/t) including taxes, with an average price of RMB 6,790/t ($930/t). Low demand caused Chinese silico manganese prices to fall this week. Steelmakers were cautious in their purchase, while silico manganese traders were perplexed in offering high prices since they were afraid of shipping at lower costs. In a similar vein, Indian steel mills have begun purchasing silico manganese on a need basis, which has lowered local buying interest due to the uncertain market outlook.

Outlook
Silico manganese export prices may fluctuate in the short-term as industry participants anticipate increased demand, and sellers are currently more inclined to raise prices as cost prices are higher than the current market offer prices. In the near future, people will keep an eye on the market's development of low-cost transactions, as well as changes in the supply and demand relationship for silico manganese.