Indian silico manganese export offers stay supported amid tight availability

• Global manganese ore prices steady, Gabon enquiries up
  
  
• Smelters struggle as rupee hits record low against dollar
  
  

Indian silico manganese export prices remained firm w-o-w amid limited availability. Also, exporters kept their offers on the higher side, not looking to give discounts.

According to BigMint's assessments on 13 January 2025, the 60-14 grade stood at $835/t FOB, constant w-o-w, and the 65-16 variant was assessed at $936/t FOB, inching up by $1/t w-o-w. Some major producers in Vizag and Raipur even offered the 65-16 grade, ex-Vizag/Haldia, at $940-$950/t FOB.

Confirmed deals (as per BigMint)

Factors keeping prices stable

Global manganese ore prices hold steady: Global manganese ore prices remained range-bound, with some Gabonese miners seeing increased inquiries for the 44% Mn grade, causing prices to rise by $0.16/dmtu w-o-w to $4.39/dmtu. Australian high-grade ore (46% Mn) stayed stable at $4.53/dmtu, up by $0.01/dmtu w-o-w, while South African lumps (37% Mn) remained largely flat at $4.12/dmtu, up $0.01/dmtu w-o-w. This stability in ore prices led silico manganese prices to stay within the same range, with sellers refraining from offering discounts as major producers are booked until February 2025.

Rupee's decline spurs import costs of ore for smelters: Indian smelters are facing rising costs as they purchase in US dollars for importing manganese ore, with the rupee hitting a historic low of 86.62 on Monday. The limited domestic availability is forcing a reliance on imported ore, compelling smelters to keep prices stable despite the currency challenges. The steeper fall in the rupee's value marks its historic drop in nearly two years, driven by a stronger American currency.

China market holds steady as spring festival nears: Chinese silico manganese prices (Mn: 65%, Si: 17%) were stable at RMB 6,030-6,430/t ($822-$877/t) ex-works, including taxes. Cautious market sentiments kept prices unchanged w-o-w. Manganese ore operations continued smoothly, with moderate demand. However, logistical challenges ahead of the Spring Festival on 29 January 2025 put some pressure on manganese alloys demand.

Outlook

Silico manganese export prices are expected to remain firm in the near term. While recent inquiries have slowed, limited supply is expected to provide underlying support.

Furthermore, increased offers for February 2025 shipments from major players like Eramet and UMK have the potential to further bolster prices.

However, the overall outlook remains uncertain and will be significantly influenced by global economic conditions, geopolitical tensions, and competitive pricing pressures from other producing countries.