- Buyers favour lower offers from Malaysia, Ukraine
- Rising costs squeeze margins for Indian exporters
India’s silico manganese export prices dropped marginally w-o-w amid tepid demand, as buyers continued to resist upward price adjustments. Despite producers’ attempts to raise offers amid firm raw material costs, subdued overseas demand and aggressive price negotiations kept overall export levels largely unchanged.
As per BigMint’s latest assessment, export prices of the 65-16 grade edged down by $5/tonne (t) w-o-w to $915/t FOB. Moreover, the 60-14 variant registered a dip of $1/t to $820/t FOB.
“The silico manganese export market is very silent, with few, weak inquiries. Given the drop in domestic prices, current FOB levels are viable for producers only, as traders’ margins have thinned,” said a trader from eastern India.
Market overview
Prices remain largely stable amid buyer resistance: Indian export prices of silico manganese were largely stable this week, with a minor drop, as overseas buyers pushed back against higher offers. Despite an uptick in input costs, notably from manganese ore and energy tariffs, buyers remained reluctant to accept premium quotes. Exporters tried to test the market with slightly higher prices, but limited spot demand and stiff competition from alternative origins kept prices in check. The result was a week of range-bound trade with minimal price movements.
Buyers remain cautious amid steel market uncertainties: Overseas demand remained sluggish, especially from Europe and East Asia, where buyers adopted a wait-and-watch approach amid uncertain steel production trends. Many end-users had thin inventories but were unwilling to restock at current prices.
Buyers also cited lower offers from other origins, such as Malaysia and Ukraine, as reasons for holding off on Indian material.
Exporters focus on cost recovery over volume push: Indian exporters pointed to rising cost pressures due to higher electricity rates, increased domestic freights, and firm manganese ore prices. As a result, many prioritised protecting margins over increasing sales volumes by significantly reducing offers. While some suppliers secured bookings for near-term shipments, most were unwilling to negotiate below a certain threshold. Exporters noted that accepting low bids would only strain already tight margins.
Chinese prices inch up despite weak demand: China’s silico manganese (Mn:65%, Si:17%) prices edged up by RMB 20/t ($3/t) d-o-d to RMB 5,630-5,900/t ($790-$827/t) exw, including taxes, with an average price of RMB 5,765/t ($808/t) on 12 September. This was despite persistent weak demand in downstream segments.
Outlook
Indian silico manganese exports are likely to remain range-bound in the near term, as firm input costs support current prices, while subdued global demand and buyer resistance limit any meaningful upward momentum.
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