- Maintenance shutdowns spark price surge
- Rising overseas inquiries may support prices
On 4 February 2025, BigMint’s assessment revealed that India’s domestic prices of 60-14 grade silico manganese surged by INR 1,400/t ($16/t) w-o-w to around INR 71,200-72,300/t ($814-827/t) ex-works. This increase marked a seven-month high, reaching levels last seen in July 2024. In Raipur and Vizag, some smelters offered material at slightly higher levels of INR 72,500-73,000/t ($830-$834/t) ex-works, with a few deals reported on the higher side. The limited supply in the domestic market has contributed to this price upsurge.
The premium 60-15 grade was slightly up w-o-w, ranging at around INR 73,500-74,500/t ($840-$853/t) exw in both Durgapur and Raipur.
The price rise was driven by a rise in MOIL’s auction prices.
Confirmed deals (as per BigMint)
Market review
Domestic prices surge on supply crunch: Due to a combination of factors, prices in the domestic market have risen. Limited supply has been a significant support for these prices. In Raipur and Vizag, many small players have ceased operations due to high production costs and increasing imported ore prices. Furthermore, major producers are booked until March 2025, limiting the availability of material. Additionally, another key producer in the Vizag region has temporarily halted production due to maintenance, holding back around 15,000 tonnes of monthly production. These elements have collectively created a substantial supply gap, leading to further price increases, source informed.
Export prices up on rising overseas inquiries: Indian silico manganese export prices have risen this week, driven by higher ore prices and growing overseas demand. As of 3 February, 2025, BigMint’s assessment revealed the export price for the 65-16 grade reached $955 per tonne (FOB), marking a $10/t increase from the previous week. The 60-14 grade also saw a $15/t increase, settling at $855/t FOB. The rising costs of both domestic and imported manganese ore are putting pressure on production costs. Notably, Australian high-grade ore prices rose to $4.79/dmtu, and Gabonese ore prices increased slightly to $4.48/dmtu. However, despite these increases, a limited upward price movement is expected due to sufficient low-grade ore availability with smelters.
Rise in manganese ore prices: MOIL, an Indian state-owned mining company, has announced new offers for manganese ore effective from 1 February 2025. According to BigMint, Mn grades above 44% have seen an increase of 3.5%, while grades below 44% have been hiked by 8.2% m-o-m. Additionally, tags for all SMGR grades (Mn 30%, Mn 25%, and Mn 20%) and fines grades have been raised by 8.2%. This scenario has further pushed up silico manganese prices.
Outlook
Limited supply and rising manganese ore prices might support domestic silico manganese prices slightly in near term. However, fluctuations in steel prices might have negative impact on the prices. Therefore, market participants should closely monitor demand and supply patterns.
Sources have informed BigMint about ample inquiries totaling around 6,000-7,000 tons from overseas countries such as Egypt, Japan, Indonesia, and Italy. This strong demand has the potential to support prices reach up to $980/t FOB Vizag for the 65-16 grade silico manganese in the near term.
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