- Rising raw material costs push prices higher
- Producers booked till Jun, supply squeeze seen
Silico manganese export prices from India have experienced a significant surge w-o-w, reaching their highest level in over two years. This increase can be attributed to rising costs of imported ore, a critical raw material in silico manganese production.
Furthermore, limited availability of exportable tonnage is adding upward pressure to prices. With most producers already heavily booked through mid-June 2024 shipments, the market is experiencing a supply squeeze.
According to BigMint’s assessments on 6 May 2024, the 60-14 grade was assessed at $1,150/t FOB, surging by $157/t w-o-w, and the 65-16 grade was at $1,253/t FOB, up by $198/t w-o-w. Furthermore, some major producers in Vizag and Raipur were offering SiMn 65-16 grade ex-Vizag/Haldia at an FOB of $1,270-$1,280/t. These prices are hovering at over 2-year high levels, as per data maintained with BigMint.
Confirmed deals
Market overview
Imported manganese ore prices rise: Indian manganese ore imports are getting expensive, with prices up by $0.10-$0.15/dmtu compared to last week. This is the third week of increases, driven by overseas suppliers raising asking prices (suggesting supply constraints) and a recent production halt at a major Australian miner. Tighter supply is leading to higher quotes for immediate deliveries to India, impacting manganese alloy production costs. Monitoring global supply and producers’ actions are essential for understanding future price trends.
Durgapur smelters informed BigMint that manganese ore import prices from Gabon and South Africa have risen significantly. This price increase is due to limited volumes following South32’s recent mine closure, coinciding with strong demand from both China and India. As a result, smelters are forced to accept these higher prices, which are expected to further increase. This will likely have a significant impact on silico manganese export prices.
Demand from key importers subdued: Demand from key silico manganese importers remained subdued since the past week. Amid pending deliveries of old orders, not many buyers from Japan and the EU are active in the market at the moment, highlighted traders. However, inquiries from the UAE and Egypt remain supported.
India exported 1.71 mnt manganese alloys in calendar year 2023 (CY23). Out of this, 0.21 mnt were sent to the UAE followed by the EU 0.19 mnt and Egypt 0.14 mnt in CY’23.
China’s silico manganese prices rise: China’s silico manganese prices are up, with spot prices of a key grade surging $28/t. This is likely due to both rising demand and higher costs of raw materials like manganese ore and coke. Chinese producers have raised their prices in response, and these increases could impact pricing in India, another major player in the global market.
Outlook
Demand from key silico manganese importers have remained subdued since the past week. Moreover, amid pending deliveries of old orders, not many buyers from Japan and the EU are active in the market at the moment, highlighted traders. However, inquiries from the UAE and Egypt will likely remain supported.
It may be mentioned, India exported 1.71 of mnt manganese alloys in calendar year 2023 (CY23). Out of this, 0.21 mnt were sent to the UAE followed by 0.19 mnt to the EU and 0.14 mnt to Egypt in CY’23.
Silico manganese export prices might uptrend in the short term due to rising raw material costs and limited global supply of ore.