India: Silico manganese export prices surge $40/t, hit 2-month high

• High raw material costs boost export offers
  
  
• Smelters flush with domestic orders till mid-Nov
  
  

Export prices of Indian silico manganese of various grades surged by $40/tonne (t) w-o-w to a two-month high, fuelled by rising inquiries from key importers and a hike in prices of imported manganese ore, a critical raw material in producing the same.

Additionally, with most producers booked till mid-November 2024 in domestic orders, the market is experiencing limited availability for exportable tonnage. This supply squeeze has strengthened the upward pressure on prices.

According to BigMint's assessments on 7 October 2024, the 60-14 grade stood at $851/t FOB, up $40/t w-o-w, and the 65-16 variant was at $938/t FOB, up $42/t w-o-w. Some major producers in Vizag and Raipur were even offering the 65-16, ex-Vizag/Haldia, at $950-$960/t FOB.

Confirmed deals

Market overview

Smelters prioritise existing orders, limit export supply: The Indian silico manganese market experienced tight supply this week, with key producers in Raipur and Vizag halting new orders to focus on fulfilling existing bulk bookings. This has limited the availability of material for exports.

Additionally, the use of high-priced manganese ore, acquired earlier in the year, has increased production costs, making smelters less willing to offer discounts on manganese alloys. These factors have led to the rise in export prices.

Inquiries from key importers rise amid supply disruptions: The Indian silico manganese market has experienced a surge in inquiries from key importers, such as Japan, Taiwan, Turkey, and Italy amid global supply disruptions. Meanwhile, inquiries from the UAE and Egypt remained stable.

Recently, the global market witnessed supply constraints, driven by disruptions in production in Zambia, which struggled with power crises. Zambia's monthly production of silico manganese is around 20,000 t. The resultant reduction in material availability provided support to India's export prices.

In August 2024, India exported approximately 105,000 t of silico manganese, an 11% increase m-o-m, with key destinations being Japan (11,000 t), Turkey (9,500 t), Italy (5,500 t), and Taiwan (4,000 t). The rise in exports to these regions reflects the growing demand for silico manganese in various global markets.

Outlook

Indian silico manganese export prices might increase in the near term due to rising global demand and limited supply. Production disruptions and increased demand from key domestic regions will also potentially be contributing factors.