India: Silico manganese export prices ease w-o-w amid sluggish demand, lower ore offers

• Buyers quote lower bids, forcing smelters to trim offers
• Prices to remain under pressure amid cautious buying

India’s silico manganese export prices softened slightly this week, as inquiries remained limited. Buyers held off on fresh bookings, cautious amid subdued steel demand in key markets.

Adding to the pressure, prices of imported manganese ore, a critical raw material, witnessed a downtrend, reducing production costs and prompting suppliers to adjust export offers to stay competitive.

According to BigMint’s latest assessment, export prices of the 65-16 grade fell by $4/tonne (t) to $929/t FOB and the 60-14 variant slipped by $9/t to $841/t FOB.

Market overview

Smelters forced to cut offers as buyer resistance grows: Market sources revealed to BigMint that buyers were quoting lower rates than smelters were willing to accept. Accordingly, export prices slipped, as increasing buyer resistance continued to weigh on negotiations, keeping the market under pressure.

With demand from major steel-producing regions such as Egypt, Italy, Japan, and other Southeast Asian nations remaining muted, there was no rush to conclude deals. This gave buyers stronger bargaining power, forcing sellers to reconsider their pricing strategy.

Consequently, smelters, though reluctant, trimmed offers to prevent inventory build-up in an already subdued market. “Buyers know the market is quiet and are using this to their advantage,” a trader noted. “Unless inquiries pick up, smelters may be forced to match buyer bids more closely.”

Cautious smelter buying weighs on imported manganese ore market: India’s imported manganese ore prices edged lower this week across most grades amid reduced demand for manganese alloys. Smelters adopted a cautious stance, curbing purchases.

• Gabon 44% ore slipped by $0.03/dry metric tonne unit (dmtu) to $4.40/dmtu on weak high-grade alloy demand.
• Australian 46% ore declined by $0.04/dmtu to $4.70/dmtu, signalling softening demand.
• South African 37% lumps inched down by $0.02/dmtu to $4.18/dmtu, supported by limited need-based buying.

The steady price drop led to reduced cost support for silico manganese producers.

Outlook

Silico manganese export prices are expected to remain under slight downward pressure in the near term, as limited demand and cautious buying continue to weigh on the market.