- Gradual recovery seen for manganese alloys from EU buyers
- Chinese silico manganese prices remain stable
Indian silico manganese export prices jumped significantly this week, which peaked at the same level as September 2023, a four-month high. Prices have risen on rising demand and deliberate production cuts by domestic manganese alloys smelters. The increase, both domestically and internationally, indicates sound market dynamics, which were aided by modest fluctuations in imported raw material prices and smelters’ strategic decisions. As a result, silico manganese export prices rose by $18/t FOB of silico manganese.
According to BigMint’s assessments on 5 February 2024, the 60-14 grade was evaluated at $838/t FOB, up by $18/t over the previous week, and the 65-16 grade was assessed at $939/t FOB, up $19/t w-o-w.
Weekly confirmed deal
Global market observations this week
Recovery in buying inquiries from overseas countries: Demand in European manganese alloys market has recovered after a gradual seasonal pause which have resulted in active bookings. Market participants anticipate that prices might rise in the near future, so they are striving to boost stock purchases which boosted demand for Indian silico manganese. One of the main factors behind this price increase was the constraint supply in the spot market, which was the consequence of production cuts from a few plants in Raipur, Durgapur, and Vizag.
Chinese market offerings remain steady with limited trade deals: Supply-demand factors remained neutral, while silico manganese prices in China stayed stable week over week. Between RMB 6,310/t and 6,410/t ($888/t-$902/t), those were the approximate pricing. Everything was priced ex-works, including VAT. China’s silico manganese market ran at a moderate pace, with a dismal trading environment and sluggish market activity. Given the weak supply and demand that has been present for some time, the market as a whole suffered a blow. Both purchases and market trades decreased as a result of the traders’ inactivity.
Outlook
Prices for silico manganese may be on an upward trend, given the recent spike in export bookings and the exporters’ optimistic outlook on the market. Furthermore, a leading smelter in Raipur notified BigMint that the majority of producers are booked until February 2024, and not offering in the market has resulted in a supply deficit. In addition, smelters expect silico manganese export prices to rise around $15-$20/t FOB in the upcoming weeks.