Domestic silico manganese prices in India have continued its upward trend this week. Pending deliveries of previous bookings, production cuts seen amongst smelters in the past few weeks and price support from imported manganese ore have collectively resulted in price hike.
According to BigMint’s assessment on 31 December 2024, domestic prices of the 60-14 grade of silico manganese rose by INR 1,300/tonne (t) ($15/t) w-o-w to INR 68,000-68,600/t ($793-800/t) exw; meanwhile, these elevation in offers have also seen an acceptance among the buyers dealing in the domestic spot market.
Confirmed deal (as per BigMint)
Reasons for price rise:
Imported manganese ore prices edge up: South African-origin manganese ore (37%) prices witnessed a 3% m-o-m rise to a monthly average of $4.07/dry metric tonne unit (dmtu) in December compared to $3.94/dmtu in November. Meanwhile, for manganese ore of Australian (46%) and Gabonese (44%) origin, prices rose by 3% to $4.8/dmtu in December as against $4.36/dmtu in November and $4.2/dmtu in December against $4.07/dmtu in November, respectively.
Increased ore prices m-o-m have prompted producers to adjust prices in response to higher input costs and increased operational expenses.
Smelter production cuts, steel market recovery drive price rise: Prices rose as many smelters reduced output and the steel market showed signs of recovery. The key smelters in Durgapur, Raipur, and Vizag cut production due to falling export demand and weak domestic sales. Meanwhile, a slight uptick in steel prices occurred this week, supported by moderate demand for both semi-finished and finished steel products, signaling cautious optimism in the market.
Billet prices edge up w-o-w: BigMint’s daily steel billet index was assessed at INR 39,600 /t ($462/t) exw-Raipur on 1 December; inching up by INR 650/t ($8/t). Prices experienced a slight uptick driven by rising steel prices in the domestic market. However, trading activity remains limited, as market participants are cautious and reluctant to engage at these higher price levels.
Outlook
Domestic silico manganese prices are anticipated to trend upwards as MOIL, India’s state-owned mining company, has raised manganese ore prices for January 2025. MOIL has announced a slight increase in offers for manganese ore effective January 2025. Mn grades above 44% have witnessed a marginal hike of 1% in offers m-o-m, while lumps below 44% saw an uptick by 5% from last month’s offer, BigMint learned from sources., supporting upward price momentum in silico manganese prices too.
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