India: Silicomanganese prices surge to two-month high

• Bulk bookings, production cuts fuel domestic prices
  
  
• Export offers at over one-month high
  
  

Domestic silicomanganese prices in India have seen a slight increase this week. This uptick can be attributed to limited supply and robust seller offers. While the increase is modest, it signifies a shift in market dynamics. After a period of downward pressure, sellers are now demonstrating more strength in the market.

According to BigMint's assessment on 23 December 2024, domestic prices of the 60-14 grade of silicomanganese inched up by INR 1,000/tonne (t) ($10/t) w-o-w to INR 66,800-67,200/t ($783-788/t) exw, though some smelters in Raipur offered material at INR 67,500-68,000/t ($783-$788/t) exw. Prices have hit the highest since end-Oct'24.

The premium grade (60-15) witnessed a slight hike to settle at INR 69,000-71,500/t ($809-$838/t) exw in Durgapur and Raipur.

Confirmed deal (as per BigMint)

Market review

Supply tightness: The domestic silicomanganese market is experiencing a period of heightened tension. Bulk bookings at higher rates and limited spot availability for January 2025 delivery have created a panic buying situation among buyers.

Smelters, facing production cuts and mounting losses, are also contributing to the market volatility. This combination of factors has led to a significant increase in domestic silicomanganese prices.

Furthermore, production cuts by major smelters, coupled with losses of INR 5,000-6,000/t ($58-70/t) seen earlier in the month, have further tightened supply and supported the recent price increase.

Export prices surge to over 1-month high: Indian silico manganese export prices surged by $24/tonne (t) w-o-w to their highest in over a month, with similar levels last seen in mid-November 2024. Increased inquiries from key importers drove up demand for Indian material. Additionally, limited availability of material, with most producers booked with domestic orders until January 2025, amplified upward pressure on prices. According to BigMint's assessments on 23 December 2024, the 60-14 grade stood at $806/t FOB, up $24/t w-o-w, and the 65-16 variant was at $903/t FOB, up $24/t w-o-w. Some major producers in Vizag and Raipur even offered 65-16, ex-Vizag/Haldia, at $910-$915/t FOB.

Billet prices remain firm w-o-w: BigMint's daily steel billet index was assessed at INR 39,000 /t ($461/t) exw-Raipur on 26 December; buying activity in both the semi-finished and finished steel segments remained moderate during this week, which supported the stability in steel prices.

Outlook

Domestic silicomanganese prices are expected to experience fluctuations in the near term. Cautious buying by steel mills is limiting potential price increases despite limited supply. The market will closely monitor MOIL's and imported manganese ore prices for January 2025, which will significantly impact domestic prices.