Indian silico manganese export prices rise further on demand recovery from overseas

• Bulk material booking from overseas helps boost export demand recovery.
  
  
• Freight cost drops by $100 per container, improved booking.
  
  

Silico manganese prices rose for another consecutive week due to a recovery in demand for Indian material and fewer bulk deal conversions in Egypt and the European region, which supported the increase in export prices by $12/t FOB of silico manganese, particularly high-grade silico manganese (65-16).

According to BigMint's assessments on 29 January, 2024, the 60-14 grade was evaluated at $820/t FOB, up by $10/t over the previous week, and the 65-16 grade was assessed at $920/t FOB, up $15/t. Indian producers were confident in their silico manganese offerings and expected price hikes in the short term.

Furthermore, a major Vizag smelter informed BigMint that due to elevated production costs, southern Indian smelters have temporarily curtailed production, and port inventories have continued to fall as demand recovers. Additionally, the drop in ocean freight costs of $100 per container has made it easier for buyers and sellers to complete transactions and ship goods across the Red Sea without encountering any issues. This has relieved exporters' burdens in shipping goods to Egypt and other European countries, supporting market demand last week.

Weekly confirmed deal

Global market observations this week

Sellers offering a strong price-on-demand recovery from exports: Since there are plenty of inquiries in the market, Indian smelters maintained their pricing higher. Bulk bookings from Vietnam, Egypt, and Europe have also supported prices, and by the end of this week, they hope to close additional deals on the increasing number of overseas inquiries.

Chinese market offerings remain steady with limited trade deals: Prices for silico manganese in China stayed steady w-o-w as the market was dull, and some producers curtailed production. The rates ranged from RMB 6,310 to 6,410/t ($879 to $893). All prices were ex-works and included taxes. This week, the market performed about average. Prices remained stable as factories sold fewer units and the steel sector spent less. With the forthcoming Spring Festival, the market remained rather inactive. Some factories in the south even decreased or ceased production.

Outlook

Silico manganese prices may be on the rise as producers keep foreseeing strong demand and are positive about the market future. In the short term, we must continue to monitor the growth of high-price transactions in the market as well as changes in the supply and demand connection for silico manganese.