India: Silico manganese exports face pressure from softening global demand

• Overseas buyers on the hunt for bargains
  
  
• Manganese ore prices witness stability

  
  
  

Indian silico manganese export prices declined by approximately $6/tonne (t) w-o-w, driven primarily by weakening demand.

BigMint's assessment on 21 October 2024 revealed downward trends: the 65-16 grade fell by $6/t to $930/t FOB, while 60-14 dropped $5/t to $841/t FOB. Major producers in Vizag and Raipur were forced to keep 65-16 prices nearly flat, within a range of $940-$950/t FOB, amid thin buying interest.

Market overview

Overseas buyers seek discounts on export prices: Overseas buyers, including those from the UAE, Italy, and Japan, actively sought discounted prices for 65-16 grade silico manganese, targeting a range of $900-910/t FOB India. Following negotiations between smelters and buyers, there was a modest w-o-w decline in offers. Buyer sentiment was tempered by the prevailing uncertainty in the global steel market, with a reluctance to commit to higher-priced purchases due to concerns over profitability.

High-grade manganese ore prices remain largely stable: The imported manganese ore market remained stable over the week, except for slight fluctuations. High-grade ore prices from Australia and Gabon inched up by $0.05/dry metric tonne unit (dmtu) w-o-w, rebounding after early-October 2024 declines. South African lumps held steady at $3.85/dmtu, with a few deals at $3.6/dmtu CNF India, sources told BigMint. However, weak demand for manganese alloys led to subdued market sentiments, which, in turn, contributed to lower silico manganese export prices from India.

Chinese silico manganese prices edge down: The Chinese silico manganese market trended downward this week due to slow activity and fewer trades. Prices of silico manganese (65% Mn, 17% Si) dropped by RMB 90/t ($13/t) to RMB 6,010-6,410/t ($855-$901/t) exw, including taxes. Weak sentiments and uncertain steel demand pushed some sellers to offload material at lower prices, while hesitant downstream buyers led to sluggish trade momentum and market stagnation.

Outlook

Given the current market dynamics, silico manganese export prices are likely to fall slightly, depending on the level of export inquiries. Close monitoring of imported ore prices and global export demand will be crucial for predicting future price trends.