India: Silico manganese prices climb to a 3-month high in recent deals

• Smelters maintain firm stance even as steel sector turbulence prevails
  
  
• Uncertain outlook clouds domestic market amid global headwinds
  
  

According to BigMint's assessment on 14 January, 2025, domestic prices for 60-14 grade silico manganese saw a modest increase of INR 650/tonne ($8/t) w-o-w, reaching INR 69,700-70,800/t ($806-819/t) ex-works. Some smelters in Raipur offered slightly higher at INR 70,500-71,000/t ($815-$826/t) ex-works. Prices in Raipur and Durgapur are hovering close to a three-month high as these levels were last seen in early-October.

The premium 60-15 grade maintained its price range at INR 72,000-73,500/t ($838-$856/t) ex-works in both Durgapur and Raipur.

Confirmed deals (as per BigMint)

Market Overview

High-priced deals lift domestic market sentiment: The domestic silico manganese market in India navigated a delicate balance this week. While demand remained subdued due to fluctuating steel prices, a few high-priced deals were heard at INR 70,500/t exw Raipur which boosted overall market sentiment. Steel mills, despite the tepid demand, were actively acquiring silico manganese. This was partly driven by a growing concern over potential price increases for imported manganese ore, which had seen a slight upward movement in recent times.

However, the steel sector itself was experiencing some turbulence, with prices exhibiting a degree of volatility. This uncertainty added another layer of complexity to the already challenging market dynamics.

Despite the subdued demand, smelters maintained a firm stance, keeping their offer prices elevated.

Export prices hold steady amid limited availability: Indian silico manganese export prices remained firm w-o-w driven by limited availability in the market. Exporters have been steadfast in their approach, maintaining high offer prices and refraining from discounts.

According to BigMint's assessments on 13 January, the 60-14 grade was priced at $835/t FOB, remaining constant w-o-w. Meanwhile, the 65-16 variant saw a slight increase, reaching $936/t FOB, inching up by $1/t week-over-week. Major producers in Vizag and Raipur even offered the 65-16 grade, ex-Vizag/Haldia, at prices ranging between $940-$950/t FOB.

Outlook

The near-term outlook for the domestic silico manganese market appears to be one of cautious optimism. While fluctuating steel prices and subdued demand pose challenges, limited supply and strong order books for smelters suggest that prices may remain relatively firm in the coming weeks.

However, the market remains susceptible to external pressures such as global economic turmoil, geopolitical events, and sudden changes and volatility in prices of imported raw materials.