Manganese alloy imports come under EU scrutiny: What lies ahead for India?

• Nearly 40% of India's Mn alloys output gets exported

  
  
  

• Shipments to EU make up 16% of India's total exports

  
  
  

In response to a request from certain EU Member States, the European Commission has initiated a safeguard investigation into imports of manganese- and silicon-based alloying elements. This decision follows a detailed analysis of market conditions, which suggests that these imports may be causing or threatening to cause serious harm to EU producers.

Key findings, concerns

• Rising import volumes: EU's imports of the investigated products grew to 1.6 million tonnes (mnt) by mid-2024 from 1.3 mnt in 2020, with the region's production increasing in parallel. Production growth surged to 298% y-o-y in 2024 from 126% y-o-y in 2020, while consumption growth increased to 83% y-o-y in 2024 from 71% y-o-y in 2020.
  
  
• Global overcapacity: With global overcapacity of over 21 mnt and additional planned capacity of 13 mnt, the EU market has become an attractive target for exporters, particularly as other countries impose trade defence measures.
  
  
• Economic pressures: EU producers are facing significant challenges, including market share loss and price undercutting, leading to reduced profitability. The evidence suggests that without intervention, these pressures could intensify due to further import increases.
  
  

Products under review

The investigation covers several alloying elements, including ferro manganese, ferro silicon, ferro silico manganese, and other related products classified under specific Harmonised System (HS)/Combined Nomenclature (CN) codes.

This development underscores the EU's commitment to addressing global trade imbalances and protecting its industrial base from the adverse impacts of increased imports. For further details or participation instructions, stakeholders can visit the Commission's trade defence portal.

Scope of investigation

The investigation will evaluate whether the current surge in imports, driven by unforeseen developments, necessitates safeguard measures. It will also consider trade diversions resulting from measures adopted by third countries.

Participation, timeline

Interested parties, including exporters, importers, and end-users, are invited to submit written views and supporting evidence. The investigation will follow a structured timeline. Parties must provide responses within 21 days of the notice's publication.

Why does it matter for Indian manganese alloy players?

India's total manganese alloy exports in FY'24 amounted to 1.7 mnt, as per data maintained with BigMint. Exports account for nearly 40% share of India's manganese alloys production, which was recorded at around 4 mnt in FY'24.

Of this share, silico manganese accounted for 1.1 mnt, and ferro manganese shipments totalled 0.65 mnt. Exports to Europe were around 0.28 mnt (16%) of this total.

European steel mills, which rely on these imports, may face significant challenges in sourcing manganese alloys from alternative markets, potentially affecting their production capabilities. As a result, these mills are likely to oppose the approval of the safeguard investigation, in an effort to maintain uninterrupted access, highlighted sources.

In conversation with Indian players, BigMint learnt that, currently, there will be no setbacks in export inquiries and bookings made, as the investigation has just been initiated. Generally, these safeguard measures take time to be implemented.

However, if such measures are implemented, they might result in the diversion of EU export volumes to the domestic market, which may keep prices under check in the long term.