- Falling ore prices make steelmakers cautious
- Billet prices fall w-o-w on weak demand
Domestic silico manganese prices in India edged down w-o-w amid falling raw material prices and limited demand in domestic steel mills.
According to BigMint’s assessment, the price range of silico manganese (60-14) in India remained firm compared to the previous assessment on 27 August 2024. As of 3 September, prices were within the range of INR 67,000-67,600/tonne (t) ($798-806/t) exw in the major markets of Durgapur, Raipur, and Vizag. Premium-grade silico manganese (60-15) was available in Durgapur and Raipur at approximately INR 68,500-69,500/t ($815-827/t) exw.
Confirmed deals (as per BigMint)
Market overview
Market uncertainty drives strategic purchases: Indian steel mills are adopting a strategic approach to silico manganese procurement, carefully balancing their raw material needs with prevailing market uncertainties. The recent sharp decline in domestic and imported manganese ore prices has fostered caution in the market, leading to a “wait-and-watch” approach among buyers.
- MOIL announces new prices: MOIL, India’s leading manganese ore producer, has announced new prices in response to market trends. Manganese ore grades above 44% experienced a 20% price reduction, while grades below 44%, including SMGR and fines, saw a 15% decrease in prices, effective 1 September 2024.
- Imported manganese ore offers hit 6-month low: Imported manganese ore offers to India have reached a six-month low, with South African Mn37% lumps falling to $4/dry metric tonne unit (dmtu). High-grade imported manganese ore is currently trading at an over-three-month low of $6.2-6.65/dmtu.
Overseas demand slump drives down export prices: Indian silico manganese export offers have declined by approximately $15/t w-o-w. This downturn is attributed to muted overseas trade, primarily driven by reduced consumption in key importing regions.
BigMint’s assessment on 2 September 2024 highlights this downward trend. Silico manganese of 65-16 grade decreased by $24/t to $930/t FOB, reaching a five-month low. The 60-14 grade fell by $5/t to $820/t FOB. A reduction in crude steel production in the Middle East and Japan, coupled with liquidity constraints in other regions, has led to a decrease in overall consumption.
Billet prices drop w-o-w: BigMint’s steel billet index, a key benchmark in India, witnessed a significant decline of INR 600/t to INR 37,900/t ($462/t) exw-Raipur on 4 September 2024. This downtrend reflects negative market sentiments in both finished and semi-finished steel, leading to cautious buying behaviour. Steel mills are limiting purchases to only immediate needs while the market corrects. The weak demand in the steel market has led to a ripple effect on silico manganese prices.
Outlook
Domestic silico manganese prices are likely to remain under pressure in the short term. The recent decline in imported manganese ore prices, coupled with subdued demand for steel and related products, is expected to continue influencing the domestic market.
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