- Global demand uncertainty, inventory pressure persist
- Rising competition, seasonal disruptions challenge exports
The Indian silico manganese export market has shown continued price stability w-o-w, with minimal fluctuations noted. Market participants report that export offers have largely remained unchanged due to subdued demand and limited transaction volumes in the overseas market. Around 504 t of material were booked in the 65-16 grade. However, only around 250 t was booked in the 60-14 grade last week.
BigMint assessed 65-16 silico manganese export prices at $930/t FOB on 26 May 2025, a marginal $2/t drop w-o-w. The 60-14 grade remained firm at $838/t FOB, w-o-w.
Market overview
Global uncertainty keeps market subdued: Traders attribute the flat pricing trend to a combination of tepid buying interest from key importing nations and sufficient inventory levels in destination markets. Additionally, uncertainty in global alloy demand, along with cautious procurement by buyers, has led to a slowdown in spot inquiries.
Additionally, overseas buyers are reported to be holding sufficient inventory, reducing the urgency to conclude new deals. This inventory overhang is particularly visible in key consuming regions, which further dampens the potential for price hikes despite steady input costs.
In April, global production stood at 155.7 mnt, a 0.3% decrease compared to April 2024. In CY’24, world crude steel output had declined by 0.8% to 1,882.6 mnt, as per WSA data. Japan’s crude steel production contracted by 5.3% y-o-y in 4MCY’25 to 27 mnt. According to Japan’s Ministry of Economy, Trade, and Industry (METI), apart from the prevailing weakness in the construction sector, auto sector headwinds continue.
Competitive supply from alternate origins: One of the key challenges facing Indian silico manganese exporters is intensifying competition from other producing nations, notably Malaysia and South Africa. These countries have ramped up their production and exports in recent months, offering material at comparatively lower prices or with more flexible commercial terms, thus capturing a share of India’s traditional export markets.
Slight decline in raw material prices: Prices of imported manganese ore (Mn 37-46%) inched down w-o-w across all grades. Mn44% from Gabon stood at $4.49/dry metric tonne unit (dmtu), down by $0.02/dmtu w-o-w. Mn46% from Australia was at $4.80/dmtu CIF India, down by $0.03/dmtu.
Additionally, Jupiter Mines Limited, operator of the Tshipi Borwa Manganese Mine in the Kalahari manganese field in South Africa, set offers for June shipments of its high-grade Mn36.5% semi-carbonate lumps at $3.85/dmtu CIF China, unchanged m-o-m.
Seasonal monsoon-related logistics concerns: As India enters the annual monsoon season (June–September), the ferro alloys industry, including silico manganese exporters, faces several logistical and operational challenges that can disrupt supply chains and delay shipments. While not a direct pricing factor, these seasonal issues also impact trade flows and planning, influencing both buyer sentiment and exporter behaviour.
Outlook
Industry participants expect this trend of stability to persist in the near term unless there is a notable change in global steel demand or raw material pricing.
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