- Bulk bookings, halted production drive up prices
- Market tightens, sellers booked till Jan’25
Indian silico manganese export prices saw a significant jump of $17/tonne this week, reaching a two-month peak. This surge is attributed to bulk deals at higher rates from key importers amid limited availability of material.
Additionally, with most producers booked till January 2025 in fulfilling bulk orders, the market is experiencing limited availability for exports. This supply squeeze has strengthened the upward pressure on prices.
According to BigMint’s assessments on 30 December, the 60-14 grade stood at $824/t FOB, up $18/t w-o-w, and the 65-16 variant was at $919/t FOB, up $42/t w-o-w. Some major producers in Vizag and Raipur were even offering 65-16, ex-Vizag/Haldia, at $930-$940/t FOB.
Market overview
Inventory rush and bulk orders propel export prices: The Indian silico manganese market experienced tight supply this week, as key producers in Raipur and Vizag halted new orders to prioritise fulfilling existing bulk bookings of approximately 25,000-30,000t for Europe, Egypt, and the SE Asia region. As a result, major smelters are focused on meeting these bulk orders, which has limited the availability of material for new orders.
Additionally, recent bulk buying has occurred to maintain inventory levels amidst rising prices in domestic steel mills, further supporting the upward trend in prices.
According to sources, there are significant inquiries for bulk bookings extending until February 2025, with prices expected to potentially rise to $860-870/t FOB Haldia/Vizag in the near term. This anticipated increase is largely due to small smelters in key regions temporarily halting production, which has widened the existing supply and demand gap. As a result, the market dynamics are favoring price movements upwards in the coming weeks.
Sellers maintain firm prices as buyers rush to secure orders: sellers are maintaining high prices as the market accepts these rates, leading to a rush among buyers to secure orders before further price increases. With major sellers already booked until January 2025, the limited availability of material has heightened competition, driving buyers to act swiftly in anticipation of continued price rises.
China’s silico manganese prices constant w-o-w: Chinese silico manganese (Mn: 65%, Si: 17%) prices were largely stable w-o-w, with a slight decline of RMB 80/t ($11/t) to RMB 6,030-6,430/t ($826-$881/t) exw, including taxes. The silico manganese market remained largely stable, with cautious sentiment, weak demand and a wait-and-see approach.
Outlook
Silico manganese export prices are anticipated to experience upward movements in the coming weeks driven by robust demand and limited supply. Stakeholders should prepare for potential price increases and consider strategic inventory management to navigate this period of market volatility effectively.
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