- Export-centric Vizag faces material shortages
- Limited supply drives up global Mn ore prices
Indian silico manganese export prices increased this week due to rising inquiries for material and limited supply for export bookings.
BigMint’s assessment on 10 February 2025 revealed that export prices for the 65-16 grade stood at $961/tonne (t) FOB, reflecting a $6/t increase w-o-w. Parallelly, the 60-14 variant saw an increase of $7/t w-o-w, to $862/t FOB.
In the past couple of days, amid tightening supply, Indian exporters received inquiries for around 15,000 t of material from Japan, Egypt, Turkey and other countries. The spike in inquiries primarily contributed to higher silico manganese export tags.
Confirmed deals (as per BigMint)
Factors driving prices higher
Exporters struggle with orders amid material shortages, price hikes: Limited supply in the export market pushed up prices, as Indian smelters are largely booked through mid-March 2025. Several key producers in Vizag have temporarily shut down their furnaces due to high electricity tariffs in Andhra Pradesh, which have squeezed their profit margins. As a result, they have opted to pause operations until the market shows signs of recovery.
Vizag, being an export-centric region with port access, significantly influences export prices. Exporters are currently struggling to fulfil existing orders due to the limited availability of materials, exacerbating the upward pressure on export prices.
Global manganese ore prices rise amid declining port inventories: Global manganese ore prices increased slightly due to declining port inventory and limited supplies from miners. Australian high-grade (46% Mn) ore increased by $0.37/dry metric tonne unit (dmtu) w-o-w to $5.16/dmtu, while Gabonese high-grade (44% Mn) ore rose by $0.35/dmtu w-o-w to $4.83/dmtu due to rising production costs and rail maintenance. South African lumps (37% Mn) saw a slight rise of $0.20/dmtu w-o-w to $4.57/dmtu. All prices are in CNF India.
Global miners raised prices due to declining port inventories and expectations of a demand pick-up from China following the Lunar New Year holidays. Expectations of heightened market activity in China even led miners to reduce ore supply to other countries, including India.
Additionally, although South32 has resumed production at GEMCO in Australia, it will take time for full supply to resume. The resultant supply constraint has also contributed to robust ore prices globally.
Additionally, Eramet Comilog from Gabon raised its March 2025 shipment prices, with Mn 44.5% lumps at $4.75/dmtu and 43% chips at $4.55/dmtu, marking a $0.45/dmtu increase m-o-m.
Outlook
Limited supply and rising ore prices are likely to push silico manganese export prices upward. Additionally, global steel production trends, currency fluctuations, and demand dynamics will be critical in determining the exact trajectory of prices in the near future.
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