Indian silico manganese export prices drop over $15 w-o-w in absence of active firm inquiries

Stalemate inquiries from abroad and a decline in demand in steel mills globally have put pressure on prices, causing India's silico manganese export prices to drop by $16/t FOB w-o-w. Price assessments for higher-quality silico manganese have reached a two-month low, according to SteelMint. For the 60-14 grade, prices were $777/t FOB, $23/t FOB w-o-w, which is close to a three-year low, and $878/t FOB for the 65-16 grade, which decreased slightly by $9/t FOB w-o-w.

Weekly confirmed deal

China's ZCE futures drop: Zhengzhou Commodity Exchange (ZCE), silico manganese futures contracts for November delivery dipped slightly by RMB 82/t ($/t) w-o-w, closing at RMB 6,602/t ($914/t) on 23 October, reflecting prevailing weak market sentiments. This downturn also helped maintain the stability of India's export prices.

China's HBIS reduces silico manganese bids by $7/t for October 2023 deliveries: China's Hebei Iron and Steel (HBIS) Group has announced silico manganese bid prices for Oct'23 delivery at RMB 7,000/t ($962/t), down RMB 50/t ($7/t) from the previous month.

China's silico manganese prices are falling because of the bleak market situation: China's silico manganese prices fell w-o-w due to the country's bleak market situation. Domestic silico manganese (Mn: 65%) acceptance bids were lackluster as prices fell by RMB 120/t ($16.40/t), hovering around RMB 6620-6720/t ($905-$918/t). All prices are ex-works and include tax. The silico manganese market was poor due to a deserted trading environment, and future prices declined w-o-w. Steel mills were more cautious in their purchases, and silico manganese manufacturers were under pressure to raise prices.

Outlook
Silico manganese export prices may fall in the short term, as participants in the industry anticipate that reduction in steel mill consumption will put downward pressure on silico manganese pricing. Monitoring the market for low-cost transactions, as well as changes in current stockpiles and the demand-supply relationship for silico manganese, will influence future prices.