- Overseas buyers step back, Indian exports under pressure
- Lack of momentum in export market points to softening alloy prices
Indian silico manganese export prices declined slightly week-on-week, reflecting a slowdown in inquiries from international markets. The 65-16 grade and 60-14 grades saw marginal price corrections as buyers remained on the sidelines.
Meanwhile, a surplus supply in the domestic market is creating a panic-like situation, with producers facing pressure to offload inventory. This oversupply is pushing prices downward, adding to market uncertainty and cautious sentiment among manufacturers.
According to BigMint’s assessments, Indian silico manganese export prices inched down w-o-w, with the 65-16 grade at $932/t FOB, down by $6/t FOB and the 60-14 grade fell by $5/t at $855/t FOB since the last assessment on 28 July, amid cautious buying. However, the limited increase signals modest demand, as buyers remain cautious amid firm price levels and subdued market sentiment.
The European Union has announced provisional safeguard measures targeting the import of certain ferro alloying elements, in a move aimed at protecting domestic industry from potential market disruption caused by underpriced imports. The market awaits clarity in terms of duty, effective dates, grades etc. and hence, trades have witnessed a slowdown.
Market review
Export market faces global demand slump: Exporters of Indian silico manganese are witnessing limited inquiries from key overseas markets including the UAE, Japan, Italy, Taiwan, and Turkiye. This decline stems from declining steel production in these regions, impacted by a combination of factors such as economic slowdowns, aging infrastructure, and ongoing decarbonisation transitions, especially in developed markets like Japan and Italy.
In Turkiye, post-earthquake reconstruction challenges, currency volatility, and inflationary pressures have led to an inconsistent demand pattern in the steel sector. Similarly, Taiwan’s export-driven economy has been hit by weakened global demand, slowing down steel output and alloy intake, sources informed BigMint.
Export prices drop as market shrugs off imported ore hike: Silico manganese export prices continued to face downward pressure despite a marginal rise in imported manganese ore prices. The modest uptick in ore rates w-o-w. Australian 46% Mn at $4.70/dmtu, Gabonese 44% Mn at $4.40/dmtu, and South African 37% Mn at $4.16/dmtu, had little impact on alloy pricing. Weak demand from the steel sector, tepid buyer sentiment, and limited procurement activity weighed heavily on the market, preventing any meaningful price recovery and reinforcing bearish fundamentals.
Outlook
Silico manganese prices may dip slightly in the near term amid weak overseas demand, lack of bulk orders, and cautious market sentiment.
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