- Modest demand recovery and supply cuts support prices
- Imported ore prices rise, South Africa slips
Silico manganese export prices remained largely stable this week, witnessing a marginal uptick driven by a modest revival in overseas inquiries. Additionally, limited supply conditions contributed significantly to the upward price movement, as sellers leveraged tighter availability to secure slightly improved realizations in a cautious market environment.
As per BigMint’s latest assessment, export prices of the 65-16 grade edged up by $2/tonne (t) w-o-w to $908/t FOB. Meanwhile, the 60-14 variant also registered a rise of $3/t to $814/t FOB.
Overview
Mild recovery in overseas inquiries lends support: Exporters noted a slight rebound in overseas inquiries, especially from Southeast Asia and the Middle East, where buyers resumed discussions after a period of subdued activity. Though volumes haven’t surged significantly, the return of regular inquiries has encouraged sellers to hold firm on offers. Many buyers appear to be gradually replenishing inventories in anticipation of year-end production cycles.
Limited supply tightens spot availability: A planned reduction in production by several Indian silico manganese producers has notably impacted spot market availability this week. The deliberate output cut, aimed at balancing inventory levels amid subdued global demand, has led to limited prompt cargoes. With many exporters already committed to forward bookings, the restricted supply has provided sellers with stronger leverage to maintain prices and avoid downward revisions.
“The production cut was a conscious decision by many smelters, mainly due to poor conversion margins and high power costs. Since much of the available stock is already booked for export commitments, there isn’t much material left for spot trade. That’s definitely helping stabilize prices,” explained a Vizag-based exporter.
Imported manganese ore prices rise, except for South African grade: Imported manganese ore prices witnessed an upward trend across most origins, with the exception of the South African grade, which edged down w-o-w.
- Australian high-grade ore (46% Mn): Rose by $0.05/dmtu and stood at $4.77/dmtu w-o-w
- Gabonese high-grade ore (44% Mn): Up by $0.05/dmtu at $4.41/dmtu w-o-w
- South African lumps (37% Mn): Dipped by $0.01/dmtu w-o-w to $4.19/dmtu
Outlook
With current trends, silico manganese prices are expected to remain steady with a slight positive bias. A more significant rise would likely require stronger demand fundamentals or a sharper tightening in supply. For now, market players appear content with modest gains while awaiting clearer signals from downstream steel sectors.
Leave a Reply