- Cost of imported ore continues to rise
- Limited acceptance of Indian material
Indian silico manganese export prices have exhibited a pause in their upward trajectory in the past few weeks. This stabilisation is attributed to key buyers from major importing nations like the UAE, Egypt, and Italy have shown reduced purchasing activity. This could be due to concerns about higher prices or other market considerations.
According to BigMint’s assessments on 13 May 2024, the 60-14 grade was assessed at $1,150/t FOB, remained unchanged w-o-w, and the 65-16 grade was at $1,250/t FOB, a drop of $3/t w-o-w. Furthermore, some major producers in Vizag and Raipur were offering SiMn 65-16 grade ex-Vizag/Haldia at an FOB of $1,260-$1,270/t.
However, the cost of imported ore, a crucial ingredient in silico manganese production, has continued to climb up w-o-w. This may be deterring some buyers from committing to larger purchases at current price levels.
Confirmed deals
Market overview
Silico manganese exports face headwinds due to cost pressures: Indian exports of silico manganese (grade 65-16) are encountering challenges due to a recent rise in production costs.
Competitive offers from Malaysia: Indian material currently faces limited acceptance at its higher price point, which is generally around $1,250-1,260/t FOB India. This price differential is creating an opportunity for Malaysian smelters, who are offering the same grade at a more competitive rate of $1,200-1,220/t FOB basis. Resulted the price remained at the same level.
One of the major producers from Raipur mentioned that Indian exporters of silico manganese are struggling to sell overseas (Europe) because their costs are too high. Foreign buyers want to pay $1,200-1,220/tonne (t), but India’s expensive raw materials and electricity (compared to Malaysia) make it impossible for Indian smelters to profit at that price. This could mean fewer exports and lost business for India.
China’s silico manganese prices surge this week: China’s silico manganese prices jumped this week, fuelled by rising demand and raw material costs. Spot prices of silico manganese (60-14) surged by RMB 550/t ($76/t) to hover at a range of RMB 7,450/t-7,650/t ($1,030-1,057/t) ex-works and inclusive of taxes.
Indian exporters, however, are having trouble selling overseas. Their higher production costs, especially for raw materials and electricity, make it tough to compete with cheaper prices from China and Malaysia. This could lead to fewer Indian exports of silico manganese.
Outlook
Indian silico manganese export prices might fluctuate in near term. As international buyers are hesitant to commit to higher prices. This cautious approach could be driven by concerns over affordability or a wait-and-see approach in the expectation of lower prices. Monitoring cost trends and buying activity is crucial to predict future price direction.