Indian export prices of silico manganese shot up by $50/tonne (t) for prompt deliveries. Most exporters are booked and can cater only to Aug-Sept’21 at present. Thus, producers who are offering immediate shipments are seeking heavy premiums.
Meanwhile, the delays in shipments from two major Malaysian mills have lifted exports sentiments. Although the supply shortage is yet to be translated into demand from Japan, which is the biggest buyer of the Malaysian material, the demand sentiment from European and South East Asian countries is strong.
Currently, prices are at around INR 91,000/t ex-Raipur and INR 90,000-91,000/t ex-Durgapur.
In exports, FoB prices jumped by $50 to $1,300/t for the 60-14 grade and to $1,400/t for 65-16.
Highlights
Domestic market bullish on supply issues: The Indian market is bullish and quoting prices have increased significantly in the week. Some producers are quoting the silico manganese 60-14 grade at INR 92,000/t, after deals were concluded in the range of INR 90,500-91,000/t ex-plant. All the producers are facing delivery issues as they remain booked and have limited quantity to offer in the domestic market. Higher profit margins are encouraging them to keep the prices firm.
MOIL rolls over prices for June shipments: Indian manganese ore miner MOIL which has more than 50% share of the total ore production in India, rolled over its prices for June dispatches. This move can be mainly attributed to the stable international manganese ore prices.
Manganese alloy producers from Raipur speculate that the prices were not increased due to the availability of abundant imported ore and the pressure on the miner to sell off the material before the onset of the monsoon.
International market bullish: The international market for silico manganese strengthened after the major exporters delayed the shipments due to various reasons. Indian exporters were reported to be overbooked with orders in June and July, while the labour issue is an added problem in many parts of the country due to the lockdowns. In Malaysia, OM Holdings suspended operations in its Sarawak unit, and the other plants are not taking orders for June-July shipments. In China, due to the news of energy controls in Ningxia, prices increased today (June1’21)and the bullish sentiments are expected to continue.
Outlook
According to sources, the market will remain bullish in the coming week due to the imbalance in supply-demand dynamics. However, falling steel prices may put brakes on northward-bound prices soon as raw materials have become dearer.
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