India's silico manganese exports continue to face headwinds on subdued demand

• Lower bids weigh on manganese alloys exports
  
  
• Pricing disparity delays deal closures
  
  

India's silico manganese export prices fell by $51/t w-o-w on subdued demand from overseas. BigMint's 15 July assessment revealed a significant decline in Indian silico manganese prices across grades. In fact, prices hit a three-month low. SiMn 65-16 fell by $45/t FOB to $1,005/t FOB, while SiMn 60-14 dropped by $57/t FOB to $865/t FOB (Haldia/Vizag). Data indicated a softening in the Indian silico manganese market.

"Some inquiries from Japan were heard this week. Although it would be interesting to see if deals get concluded," highlighted a trader.

Market overview

Weak demand, price disparity hinder exports: Indian silico manganese exporters faced challenges in key export markets, particularly in the Middle East and North Africa (MENA) region and Europe. This is due to a confluence of factors:

• Limited buying activity: Container shortages and rising ocean freight costs in the MENA region were restricting purchases.
  
  
• Price disparity: A significant gap between Indian export offers and asking rates from these regions is delaying deal finalisation. Asking rates from these nations were below $950-970/t FOB Vizag/Haldia (for grade 65-16) which is down from the current offering.
  
  

Downtrend in imported ore prices supports lower asking rates: Imported manganese ore prices, a key raw material for silico manganese production, have witnessed a slight decline this week. Prices for various grades (Mn37%-Mn46%) have dipped slightly compared to the previous week (CIF India). This decrease is empowering buyers of silico manganese to lower their asking rates in response to the reduced raw material costs.

Subdued demand creates tug-of-war in China's silico manganese market: China's silico manganese market faces a tug-of-war between weak demand and high manganese ore prices. While demand has fallen this week, leading to a slight decline in silico manganese prices (Mn: 65%; Si: 17% down RMB 300/t to RMB 7,040-7,340/t or USD 969-1,010/t), the ongoing strength in the manganese ore market provides some cost support for silico manganese producers.

Outlook

Silico manganese export prices face a near-term squeeze between weakening demand and high production costs. However, the potential easing of container shortages could offer some support and stabilise prices, even increasing volumes. Close monitoring of demand, imported ore prices, and logistics are essential for navigating this uncertain environment.