- Export prices rise amid supply fears, strong demand
- Imported manganese ore prices increase w-o-w
Silico manganese prices jumped $22/t this week due to supply concerns. Strong demand is evident with bookings reaching an 11-month high, and producers are booked through May 1st week. Rising raw material costs are also pushing silico manganese prices higher.
According to BigMint’s assessments on 22 April 2024, the 60-14 grade was assessed at $870/t FOB, up by $21/t w-o-w, and the 65-16 grade was rated at $967/t FOB, rose by $24/t w-o-w. Furthermore, some major producers in Vizag and Raipur were still offering SiMn 65-16 grade Vizag/Haldia at a FOB of $980-$1,000/t.
Confirmed deal
Global market
Overseas demand surge propels export prices: Key international consumers located in Egypt, Turkiye, and SE Asia have recently signalled a significant uptick in demand for Indian material of around 3,000t-4,000t. This surge in export demand, coupled with limitations on the global supply side, has ignited an increase in export prices for silico manganese.
Rising imported manganese ore prices, limited supplies: The Indian manganese ore import market is currently experiencing a price increase, with prices rising between $0.7 and $0.13/dmtu from last two weeks for recent shipments. Overseas manganese ore miners have raised their asking prices for near-term deliveries to India. This suggests a potential shift in their pricing strategies or a tightening supply situation in their own regions. Furthermore, rising concerns about limited supply in the market have further amplified the price increase. This may be partly due to the recent halt in production by South32 due to cyclone impact, a major Australian supplier.
China silico manganese market shows signs of cautious optimism: China’s silico manganese market exhibited a period of cautious optimism last week. Spot prices remained firm within a narrow range of RMB 5,900/t – 6,100/t ($814/t-$842/t) ex-works including tax. Increased steel mill buying activity suggests a potential rise in demand for silico manganese, a key alloying element in steel production. This could lead to further market improvement in the coming weeks.
Near-term outlook
The near-term outlook for silico manganese exports appears positive. Strong demand from key regions and limited supply are pushing prices up. Rising raw material costs also support sellers. However, uncertainties exist. Negotiations, global liquidity, and supply chain disruptions could cap price gains in the long term. Exporters should monitor these factors closely to make informed decisions.
Furthermore, South32’s manganese operations are experiencing mixed results. While South African production thrives, the prolonged shutdown of Gemco mine in Australia due to cyclone damage might significantly impact global manganese ore supply and potentially drive prices higher.