- Constraints in supply support silico manganese export prices
- Malaysian smelters put offers on hold, Indian players to benefit
Silico manganese prices have inched up this week due to a rise in inquiries and fewer bulk deal conversions in Southeast Asia and the European region. According to BigMint’s assessments on 22 January 2024, the 60-14 grade was assessed at $810/t FOB, up $5/t w-o-w, and the 65-16 grade stood at $905/t FOB, also up $3/t. Indian manufacturers were confident in their offering of silico manganese and anticipated price increases in the near future.
Additionally, one of the biggest smelters in Vizag told BigMint that a few shipments had passed via the Red Sea without any problems, which gave the exporter relief to transport the material to Egypt last week and raised hopes that the issue would be get resolved soon. Additionally, the Vizag region’s material shortage of silico manganese 65-16 grade has influenced prices, and anticipated a jump in prices by $10-$20/t FOB in the coming week.
Global market observations this week
Indian material inquiries up as Malaysian sellers hold back: Inquiries for Indian material increased last week as importers anticipated that prices would rise further due to restricted supply and rising raw material costs globally.
Additionally, Malaysian smelters have halted their offers for temporary period due to high sea transportation costs, which has raised concerns about limited supplies to the international market, according to sources.
Chinese market offerings remain steady with limited trade deals: The prices of silico manganese in China stayed stable as the market movement remained slow due to the Spring Festival. The prices were at around RMB 6,310/t to 6,410/t ($877/t-$891/t). All prices were ex-works and inclusive of taxes. The market for silico manganese remained stagnant with an average trading atmosphere. The prices stayed the same as factories were hesitant in doing trades, and the shipments were also slow. With the Spring Festival coming up, the market stayed unhurried.
Outlook
Export prices for silico manganese may rise in the near future amid rising concern of limited supply. Indian smelters anticipate an increase in inquiries from the Southeast Asian and European regions.