- EU buyers absent due to delays in Q4 tender activity
- Rising competition from China prompts price cuts
India’s silico manganese export prices continued to decline w-o-w, as sluggish demand and weak sentiment weighed heavily on trading activity in both domestic and global markets.
Amid comfortable inventory levels, buyers adopted a wait-and-watch approach, and inquiries were muted. As a result, sellers were compelled to reduce their offers in an attempt to revive market engagement. However, a bearish tone prevailed across the market amid a persistent softness in demand.
As per BigMint’s latest assessment, export prices of the 65-16 grade declined by $6/tonne (t) w-o-w to $923/t FOB, while the 60-14 variant registered a sharper fall of $12/t to $829/t FOB.
Market overview
Global demand remains sluggish: One of the key drivers behind the continued drop in silico manganese export prices is the lack of robust demand from key markets, especially Southeast Asia and the Middle East.
Steelmakers in these regions either operated at reduced capacities or relied on existing inventories, leading to subdued procurement. Additionally, macroeconomic uncertainty and tight financing conditions made buyers more cautious, resulting in limited spot activity and weak restocking appetite.
EU buyers absent from market amid tender delays: European alloy buyers, particularly in Italy and Spain, were largely absent from the market due to delayed Q4 tender activity. Many EU-based mills are yet to float procurement inquiries, awaiting clearer signals on steel production recovery amid volatile energy prices and labour unrest.
Indian producers, who traditionally cater to these markets, were left without firm buying interest, forcing them to redirect cargoes to already saturated Asian markets — increasing competition and depressing FOB prices further.
Chinese export competition undercuts Indian offers: China has recently increased its silico manganese export activity, offering competitive prices in Asian and Middle Eastern markets, sources informed BigMint.
Chinese producers, backed by lower production costs and state-supported utilities, were able to offer silico manganese at rates $10-15/t below Indian levels. These aggressive offers shifted buyer preference, particularly in price-sensitive markets such as Bangladesh and Indonesia. Indian export prices were cut further as sellers attempted to match these lower offers in an effort to retain market share.
Outlook
Silico manganese prices are expected to remain under pressure due to persistent weak demand from key overseas markets and heightened competition from low-cost Chinese exports. Inventory overhang and raw material costs may further constrain any near-term price recovery.
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