India: Silico Manganese Market Starts with Positive Sentiment in December

Indian Silico Manganese Prices are stable and are expected to rise marginally in the domestic market. Prices have been volatile in November. In early November the prices decreased in line with the reduced ore prices by MOIL. However, in the later period of the month, the prices gained momentum as the supply shortage hit the market. Most of the Durgapur based producers rely on imported Manganese ore and when the prices of Manganese Ore hit bottom, they didn't book ores as the pre-booked high priced ores were already abundant and the market was falling. Thus, more raw material would have been just an added inventory. Most of the producers were not willing to sell material at such a lower cost and therefore reduced their production. Which had a counter effect in the market and as the supply situation got checked. Meanwhile, as the imported Manganese Ore prices hit bottom, small overseas miners having shut down their production due to the high cost of Operation. This will, however, create a shortage in the market for Manganese Ores.

Prices in December opened at INR 57,000/MT in Raipur and INR 58,500/MT in the Durgapur region. Meanwhile, the premier sized materials are being dealt at INR 59,000/MT. Meanwhile, the Silico Manganese market is witnessing a positive trend and the demand is stable. In the export market, the price of 60-14 grade increased by USD 20/MT W-o-W to USD 780/MT, whereas, the 65-16 grade lacked the momentum and the prices remained unchanged at USD 860/MT. However, in the export market, major producing countries of Silico Manganese viz., China, Ukraine, and Spain have reduced their production, which may boost the Indian export prices for the short term.

MOIL rolled over their prices for December and the Manganese Alloy producers are positive that the prices may boost. However, the prices may remain stable and may revolve around INR 57,000-58,000/MT or may increase marginally as prices elevated than the stipulated levels may not be accepted in the market given the sluggish steel market conditions. The prices for Manganese Ore remained firm in the week, as the supply of ore is one of the major concerns in the present market condition. Brazilian miners have also kept the prices firm in line with increasing transportation costs and the approaching rainy season in Brazil. Meanwhile, the transportation cost would be increased significantly as the IMO 2020 gets implemented in Jan'20. The International Maritime Organisation (IMO) has ruled that from 1 January 2020, marine sector emissions in international waters be slashed. The marine sector will have to reduce sulphur emissions by over 80% by switching to lower sulphur fuels.

On the future outlook, the prices are expected to increase marginally in the market inline with the ore supply shortage.