India's silico manganese export prices drop $10/t on weak global sentiments

• Supply glut, soft demand pressuring prices
  
  
• Chinese prices edge lower
  
  

Silico manganese export prices dropped this week owing to surplus supply and limited demand from the overseas markets. According to BigMint's assessment on 4 March 2024, the 60-14 grade was assessed at $820/t FOB, down $8/t, while 65-16 grade prices were at $920/t FOB, down $20/t.

Weekly confirmed deal

Global market

Surplus supply, low-price deals: The market currently faces a surplus of silico manganese, leading sellers to reduce prices to expedite transactions, likely due to potential delays in material shipments. The downstream market for alloy steel, which utilises silico manganese, was experiencing low demand. This, coupled with low overall trading activity in Southeast Asia and generally pessimistic market sentiment, have limited purchasing activity and hindered sustained price increases for silico manganese exports.

Despite the price drop, the raw material manganese ore market exhibited a willingness to raise prices, and the overall market atmosphere seemed to ease slightly, offering some potential support for the manganese market as a whole.

As a result of these disruptions, buyers turned to India as a reliable alternative source of silico manganese.

Chinese silico manganese prices edge down: Silico manganese prices in China dropped by RMB 200/t ($28/t) this week owing to the attentive market environment. Prices were at around RMB 6,110/t to 6,210/t ($849/t-$863/t). All prices were ex-works and inclusive of taxes. China's silico manganese market operated dull, and the trading atmosphere on the market was relatively average. As manufacturers gradually resumed work post-holidays, the market lacks clear guidance.

Outlook

As per BigMint's analysis, mixed sentiments are influencing silico manganese prices, and prices are expected to remain steady. Meanwhile, sluggish demand and supply glut are driving down prices, although rising raw material costs and a slight improvement in the market may provide some support.