India's silico manganese export prices climb by around $25 in recent deals

This week, stronger export demand from overseas markets, production cut, and material supply constraints drove up prices of India's silico manganese exports by $25-30/tonne (t). Silicon manganese export prices are seen hovering at two-month high level. In the export market, sellers have been able to maintain strong offers mainly due to bulk booking at higher pricing. Significant purchases were made in Egypt, Vietnam, Italy, and Japan.

The 60-14 grade was assessed at $800/t FOB, up $30/t w-o-w, while 65-16 grade was assessed at $880/t FOB, up $25/t w-o-w, according to SteelMint's assessments on 22 December. Furthermore, it was observed that some prominent producers in Vizag and Raipur were offering SiMn 65-16 grade Vizag/Haldia at a FOB of $900-$920.

Weekly confirmed deal

Global market observations this week

Raipur, which accounts for 40% of manganese alloy manufacturing, has recently seen production cuts. As per sources, around 30-40MVA of furnaces have been planned for maintenance in central India, which has a production loss of around 4,000-5,000t per month.

Shipping companies raising freight rates to avoid Suez Canal as Red Sea attacks evolve: Industry is anticipating for a 30% increase in freight and insurance costs, as well as delays of up to 15 days for consignments to reach Europe, as global shipping firms avoid the Red Sea and Suez Canal. According to sources, the other route between Europe and Asia via the Cape of Good Hope will take two to three weeks longer, depending on where the consignment is to be delivered. This may result in containers being held up in transit for longer periods of time and freight rates firming up. The available capacity of shipments will be further reduced in the short term and spot freight rates will continue to rise in the coming weeks, with this momentum expected to continue until the end of January.

China market sentiments stable amid uncertain sentiments: Silico manganese market in China operated cautiously and the prices were stable due to the delayed supplies. Domestic silico manganese (Mn: 65%) acceptance offers were at RMB 6,360-6,460/t ($890-$904/t). All prices were exw, including tax.

The traders were careful with their operations because of the deferred supply in the market. This means that it's tough to find the right amount of silico manganese to buy or sell. Plus, the recent bad weather made it hard to transport goods, so factories were not very interested in selling at low prices.

Outlook
Spot supply of silico manganese is limited and price might fluctuate depending upon the market demand and fluctuation in steel prices in domestic. Moreover, market participants are still concerned about rising freight costs and delayed shipments. Furthermore, as the year comes to a close, market purchases have increased, and producers are hesitant to sell at lower rates.