- Indian silico manganese export prices rise by $5 w-o-w
- Improved trade volumes support prices in the domestic market
The scarcity of silico manganese in the domestic markets caused prices to rise by around INR 400/t ($5/t) on a weekly basis in India. Further, a rise in export inquiries and a few large purchases of the 60-14 grade at higher prices resulted in an increase in the material’s domestic price. Fearing a scarcity of spot inventory, domestic mills have also indicated a desire to stock up in response to increased prices in key steel-producing nations.
According to SteelMint’s estimates, the price of silico manganese in Raipur was at INR 64,700/t exw ($780/t), up by INR 400/t ($5/t) w-o-w. Durgapur had a 400/t ($5/t) increase in prices on a weekly basis, reaching INR 64,800/t exw ($781). Vizag’s prices increased by INR 400/t ($5/t) as well, to INR 65,400/t($787/t).
Factors influencing silico manganese prices
Sellers increase bids based on improved export inquiries: Sellers’ quotations were on the higher side in the domestic market, ranging from INR 65,500-66,000/t exw($788-$794/t), Raipur, Vizag, and Durgapur, since a few deals were completed at these price levels.
Rise in Indian export prices: Furthermore, export inquiries were abundant in the port side, which influenced upward local prices of silico manganese across both grades. Silico manganese prices have inched up this week due to a rise in inquiries and fewer bulk deal conversions in Southeast Asia and the European region. According to BigMint’s assessments on 22 January 2024, the 60-14 grade was assessed at $810/t FOB, up $5/t w-o-w, and the 65-16 grade stood at $905/t FOB, also up $3/t.
Material shortage concerns in domestic market: Vizag, one of the important manganese alloys producing regions, is experiencing a material shortage as several firms have held their output and put the furnaces on maintenance until the market recovers due to high production costs and high electricity charges.
Improved bookings in both domestic and export markets: Last week saw a substantial increase in trade volumes with roughly 5,200t (export deals only) being recorded by SteelMint. This is higher than 2,700t recorded in the previous week.
Outlook
In the medium term, prices are expected to rise slightly due to the supply deficit. Meanwhile, the cost of raw materials, such as imported coke and manganese ore, might get uptick in price amid rising ocean freight. Short-term changes in the silico manganese supply-demand dynamics and the rise in expensive transactions in the market need to be closely watched.