India: Silico manganese prices rise on supply tightness

Indian silico manganese prices increased w-o-w due to supply tightness and improved demand.

According to SteelMint’s assessment on 24 Jan’22, prices in Raipur were at INR 99,200/t ex-plant and in Durgapur, at INR 100,950/t ex-plant. Some producers have already increased their offers to INR 103,000/t exw basis.

Meanwhile, export prices are at $1,360/t FOB India for 60-14 grade and $1,520/t FOB India for 65-16.

In addition, ferro manganese prices also improved this week owing to limited supply. The current market prices are hovering at around INR 101,000-101,750/t exw – in both Raipur and Durgapur, as assessed on 24 Jan’22. Some deals have concluded at INR 102,000/t exw levels too this week.

Meanwhile, SteelMint recorded around 2,500 t of manganese alloys transactions this week in spot markets across the region.

Weekly highlights

• This week, silico manganese sellers have experienced good demand from domestic and export markets. Most of the major producers are sold out till February and have begun offering for March. A shortage of suppliers caused silico manganese prices to rise.
• “Many seaborne inquiries have shifted to Indian manganese alloys as a result of the Russo-Ukrainian war, which has also supported Indian prices,” explained one major producer.
• Similarly, steel prices in India increased this week due to increased raw material costs (sponge iron and coal). Demand is moderate, but there is less inventory. In addition to steel prices rising, silico manganese producers also increased their offers.
• However, imported manganese ore prices remained stable, preventing producers from raising manganese alloy prices further.

China’s market review

Price of silico-manganese (65-17) fell w-o-w, with offers at RMB 8,325/t ($1,315/t) in Inner Mongolia (ex-works). Presently, a wait-and-watch attitude is prevalent in the manganese industry. Funding issues may cause some manufacturers to lower their prices in the future. News of production cuts and shutdown during the New Year will  causing a wave of demand after the festival, which will affect prices.

Outlook
A supply-demand imbalance is likely to keep the market optimistic in the coming week, according to sources.