India: Silico manganese prices remain steady even as production cuts loom

• Production cuts and reduction in supplies support prices
  
  
• Global miners raise manganese ore offers for Jan'25
  
  

The domestic silico manganese market has experienced a period of relative stability, with prices remaining largely unchanged. Fluctuating steel prices and subdued buying interest have influenced market dynamics. However, news of potential production shutdowns has prompted a cautious approach among market participants, supporting price stability.

According to BigMint's assessments on 10 December 2024, prices of the 60-14 grade remained rangebound w-o-w at INR 64,600-65,500/t ($761-772/t) exw. Offers in Raipur stood at INR 65,000-66,500/t ($766-784/t) exw.

However, the premium-grade (60-15) witnessed a slight increase to INR 67,500-68,000/t ($795-$801/t) exw in both Durgapur and Raipur.

Confirmed deals (as per BigMint)

Market overview

Indian players curtail output: Key Indian silico manganese smelters in Durgapur, Raipur, and Vizag have implemented production cuts of up to 50% in response to declining overseas inquiries and subdued domestic demand. This has led to prices holding steady. Also, fluctuating imported manganese ore prices have further added to the challenges faced by the industry.

Some smelters have even resorted to diversifying their operations by producing other commodities to mitigate risks. Additionally, temporary shutdowns of certain plants in Vizag, with a combined capacity of 25,000 tonnes per month, have not provided significant support to prices due to weak global demand and geopolitical tensions. Also, Raipur-based plants have curtailed output by about 15,000t in monthly basis

Imported manganese ore prices rise for Jan'25: Major miners South32 and Eramet have raised their January'25 shipment prices. South32 increased 37% grade South African ore to $4.05/dmtu CIF China, up $0.25/dmtu m-o-m. Eramet set 44.5% lumps at $4.1/dmtu and 43% chips at $3.9/dmtu, both up $0.15/dmtu. The hike supports silico manganese price stability.

Indian steel prices inch down w-o-w: The Indian steel market has experienced a decline, with steel billet prices falling by INR 600/t w-o-w to INR 38,250/t exw-Raipur. This softening of the steel market has had a direct impact on the demand for silicomanganese, leading to a cautious approach among buyers. As a result, silicomanganese prices may also experience downward pressure in the near term.

Outlook

Given the volatile steel market, domestic silico manganese prices are expected to remain firm in near term. However, a resurgence in overseas inquiries from Southeast Asia could potentially stabilise or push up prices slightly.