India: Silico manganese prices rise to 4-month high amid escalating export demand

• Domestic prices increase by INR 1,700/t ($21) w-o-w
  
  
• Manganese ore import prices rise w-o-w
  
  
• Alloys exports to SE Asia keep market supported
  
  

Prices of silico manganese in India rose by around INR 1,700/t ($21/t) w-o-w reaching a 4-month high, as these levels were last seen in September 2023. Improved inquiries for exports and domestic demand led to supply tightness.

A few major deals of 3,500-4,000 t of silico for Southeast Asia were concluded last week at higher rates for the 65-16 grade, ranging from INR 77,000-78,000/t exw ($921-$935/t FOB). These purchases, along with an increase in export inquiries, contributed to the hike in domestic prices. Fearing a shortage of spot inventory and surging silico manganese costs, domestic mills have also shown interest in stockpiling amid rising prices in major steel-producing regions in India.

According to BigMint's assessment, the price of silico manganese in Raipur was at INR 67,600/t exw ($815/t), which rose INR 1,600/t ($19) w-o-w. Durgapur witnessed a 2,000/t ($24) increase in prices w-o-w, with prices reaching INR 68,000/t exw ($819/t). Prices in Vizag prices increased by INR 1,500/t ($18/t) w-o-w to INR 68,000/t ($819/t).

Factors influencing prices

Rise in domestic offers: Sellers' quotes in the domestic market ranged from INR 68,500-69,000/t exw ($825-$832/t) for 60-14 grade in Raipur, Vizag, and Durgapur, as a few agreements were concluded at these higher levels. Furthermore, there were a lot of export inquiries at the port, which pushed up local silico manganese prices for both grades. Also, traders modified their quotes and kept prices on the higher side.

A key producer from Raipur told BigMint, "We are not offering silico manganese in the domestic market currently as we are booked till 1st week of March. As per my understanding, nearly four companies in Raipur are not offering in the domestic market. Also, stock at the trader's side has been limited, which has significantly supported the price hike, and based on rising raw material prices smelters are robust about price increases in the near term."

Improved export bookings: Last week saw a substantial increase in trade volumes with roughly 8,200t (including both domestic and export deals) was recorded. This is higher against 1,700t recorded in the previous week.

Imported manganese ore prices inch up - Imported manganese ore prices have increased marginally by $0.05/dmtu for high-grade lumps of 44% and 46% w-o-w after a gap of two weeks except South African grade lumps (37%), prices of which remained stable. High-quality manganese ore from Gabon was at $4.4/dmtu, indicating an increase of $0.05/dmtu. Similarly, high-grade manganese ore from Australia was valued at $4.7/dmtu, indicating an increase of $0.05/dmtu. Additionally, lumps Mn 37% grade from South Africa was valued at $3.9/dmtu.

Outlook

In the near term, prices of silico manganese are likely to remain supported, coinciding with an increase in inquiries, with raw material prices set to climb as overseas miners face high production costs. Monitoring high-value transactions and supply-demand dynamics is critical.