- Demand from Italy and Egypt has prevented any steep price drop
- Indian silico manganese export prices fall $5 w-o-w
Indian silico manganese export prices have shown marginal corrections due to slight recovery in demand from importing nations such as Egypt and Italy. Coupled with bulk booking requests, have bolstered smelters’ confidence in sustaining current price levels.
According to BigMint’s assessment on 11 March 2024, the 60-14 grade was assessed at $815/t FOB, dropped $5/t w-o-w, while 65-16 grade prices were at $915/t FOB, edged down by $5/t.
Weekly confirmed deal
“BigMint says that a large Raipur smelter has underlined the fierce competition presented by Chinese silico manganese supplies. This has put downward pressure on Indian export pricing, creating selling pressure at lower price points.
Furthermore, recent sales of 600-700 tonnes (t) of 60-14 grade silico manganese to Europe at $805/t FOB (Free on Board) set a standard for future transactions. This shows that competitive pricing will continue to have a significant impact on the Indian silico manganese export market.”
Factor impacting export prices
Stability amidst supply dynamics: The market dynamics reflect a delicate balance between an oversupply of low-grade silico manganese and constrained production of high-grade variants. This equilibrium has curbed significant price fluctuations, with excess low-grade inventory preventing substantial price hikes.
Demand surge from international markets: The recent uptick in demand signals from significant consumers like Egypt and Italy has provided a positive impetus to the market. This increased export demand, alongside surplus supply, has acted as a stabilising force, ensuring price consistency in the previous week.
China’s silico manganese market moderately stable: The Chinese silico manganese market exhibited cautious stability this week. Prices remained relatively unchanged, hovering around RMB 6,110/t to 6,210/t ($850/t-$864/t). Trading activity was average, with neither significant surges nor drops observed. Market negotiations remained weak, potentially indicating a wait-and-see approach from participants. Large steel mills finalising bids led to a rise in inquiries from traders, suggesting potential buying interest.
Downstream demand for silico manganese remained subdued, with actual purchase quantities primarily driven by immediate needs. This could be a contributing factor to the price stability. the Chinese silico manganese market displayed a cautious outlook. While prices are stable and some positive signs exist, such as increased inquiries, the lack of substantial downstream buying activity is keeping a lid on any significant price movements.
Outlook
BigMint’s analysis indicates a mixed future for silico manganese prices. Prices are expected to be constant in the near term. Sluggish demand and a surplus of low-grade supply might push prices down. However, there are countervailing factors. Rising raw material costs have the potential to drive prices upward. A minor improvement in overall market mood may provide some limited support to prices.