- Prices stable amid limited demand for manganese alloys
- China silico manganese inches up on improving demand
BigMint’s assessments of Indian silico manganese exports remained range-bound in an uncertain market on 30 September 2024, with the 65-16 grade nearly steady at $896/tonne (t) FOB, slightly down by $10/t w-o-w. The market continued to grapple with global challenges. The 60-14 grade remained stable, with a minor dip of $2/t w-o-w to $811/t FOB, though it was still up by $3/t compared to the previous week.
This stability was due to sellers being compelled to maintain prices amid limited demand for high-grade manganese alloys. Major producers in Vizag and Raipur kept the SiMn 65-16 grade available at a FOB range of $900-$915/t, as they faced similar pressure to maintain rates due to weak demand for high-grade manganese alloys.
Global market update
Balanced trade supports export price: The Indian silico manganese export market has shown remarkable resilience despite a challenging global economic landscape. Despite uncertainties surrounding steel production, rising costs, and limited construction activity in major markets, Indian exporters have managed to maintain a relatively stable pricing structure.
A notable development is the recent surge in silico manganese exports, driven by a series of bulk deals. This positive trend has supported the export market and helped maintain stable prices.
In August, exports of silico manganese from India to Japan reached 11,000 t, representing an impressive 18% m-o-m growth. This increase highlights the adaptability of Indian exporters and their ability to identify and capitalise on new market opportunities. However, the European region, grappling with rising inflation and electricity shortages, has experienced a decline in silico manganese consumption. This has contributed to a reduction in India’s exports to Europe, which previously accounted for a significant portion of the market.
Imported manganese ore prices stable: Prices of imported manganese ore remained unaltered w-o-w across grades. Mn44% from Gabon stood at $5.05/dmtu. Meanwhile, Mn46% from Australia stood at $5.4/dmtu CIF India and Mn37% from South Africa at $3.9/dmtu. All prices are CIF India. The imported manganese ore market has seen a stagnant week characterised by a decrease in inquiries and purchase volumes. Market participants are exhibiting a lack of buying interest, which is hindering deal finalisation and leading to a subsequent decline in demand for manganese alloys from key regions like Europe, the UAE, Egypt, and global steel producers.
Chinese silico manganese prices inch up in recent trade: The Chinese silico manganese market experienced a price increase this week, driven by increased trading activity and improved downstream demand. Prices rose by RMB 150/t ($21/t) to RMB 6,000-6,390/t exw, including taxes.
The positive market sentiment was influenced by fluctuations and rebounds in the futures market, indicating growing confidence among market participants. Billet prices in Tangshan also experienced a significant increase of RMB 150/t ($21/t) to RMB 3,050/t exw on 27 September. Several factors contributed to the price increase, including rising raw material costs, higher finished steel prices, a surge in rebar futures, and favourable macro-economic news. These factors collectively supported a bullish outlook for the steel market, boosting demand for silico manganese. The uptrend in the Chinese silico manganese space may have implications for the Indian market as well, potentially influencing pricing and demand dynamics.
Outlook
Indian silico manganese export prices are currently navigating a complex landscape with potential for both upward and downward movements. While export demand may exert upward pressure on prices, increased port inquiries and a potential rise in downstream market activity could also contribute to an uptrend. However, several factors could influence the market’s direction, including global economic conditions, steel production levels, energy costs, and competition. It is essential to closely monitor these factors to assess their potential impact on silico manganese prices.
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