Indian Silico Manganese Exports to the Middle-East Surged in H1 2017

The Middle-East is proving to be the next big market for Indian Silico Manganese exports. Iran is the largest steelmaker of MENA (The Middle East & Northern Africa) region, and most of the Silico Manganese exported from India is believed to reach Iran (either directly or via UAE).

In H1CY17, Middle-East crude steel output totaled 15.49 MnT, up by 9.37% from 14.17 MnT in the corresponding period of 2016.

From the Middle-East countries, Iran had the highest crude steel output over the half-year period, with 9.95 MnT, a 13.68% increase from 8.75 MnT a year earlier. Steel production in Iran is set to jump to 55 MnT by 2025.

Iran has the fastest steel production growth and is enjoying the strong and sustained growth to become a key market for semi finished steel exports. This presents plenty of promise for the Indian Ferro Alloy companies, as Iran could provide a sizeable opportunity for Indian Ferro Alloy exports.

Indian Silico Manganese exports to the Middle-East during H1CY17 was recorded at 33,448 MT, up by over 4-times in comparison to H1CY16. India could find a potential market in Iran and other countries from the Middle-East to export its Silico Manganese for years to come.

Indian Silico Manganese prices have shot up from the start of the Year, driven largely by healthy demand for the Alloy, and Ore prices remaining firm on Silico Manganese prices in China.

Major Silico Manganese Exporters

India continues to be the largest exporter of Silico Manganese in the world, witnessing a rise of 49% Y-o-Y during H1 2017 against H1 2016. During the same period, Japan recorded a fall of 9% Y-o-Y in its Silico Manganese imports from India, while, UAE registered a mammoth 388% Y-o-Y increase in its imports from India.

Ukraine registered a marginal increase of 7% Y-o-Y in its Silico Manganese exports during H1 2017 against H1CY16. Turkey remained its largest importer, with an increase of 52% Y-o-Y. Similarly, Italy recorded a mere 1% rise while Netherland reflected a massive 117% increase in their Silico Manganese imports from Ukraine.

South Africa, on the other hand, witnessed a fall of 4% Y-o-Y in its Silico Manganese exports. Netherland recorded a massive 522% Y-o-Y increase in its imports from South Africa while imports from the USA remained stable.

Russia exported 28,283 MT Silico Manganese during H1 2017, against 997 MT in H1 2016. However, during CY16, it had exported 17,439 MT, which reflects that most of its exports were in the second half of the year. Netherland and Belarus were the two major importers of Russian Silico Manganese.

Brazil’s Silico Manganese export volume remains almost unchanged Y-o-Y. It is also worth noting that Malaysia represents a potential new entrant into the global Silico Manganese market, as exports from the country are expected to reach worldwide.

Quantity in MT
Source: Customs

Major Silico Manganese Importers

European Union is one of the major Silico Manganese importers and recorded a significant rise of 21% Y-o-Y during H1 2017 against the same period of the previous year. Ukraine is the largest exporter to EU, witnessing an increase of 53% in its exports Y-o-Y during H1CY17.

The USA witnessed a mere 2% Y-o-Y increase in its Silico Manganese imports. South African exports to the USA fell by 7% Y-o-Y, however, remains the largest exporter to the USA. US imports of Silico Manganese remained strong in the 2nd quarter, reversing the trend seen over the first quarter, driven predominantly by strong volumes from South Africa and Georgia.

Turkey recorded the maximum increase in its Silico Manganese imports, registering a 28% Y-o-Y increase in its Silico Manganese imports during H1CY17 against the same period from the previous year. Ukraine remains the largest exporter to Turkey and recorded an increase of 39% in its exports, while India registered a substantial 39% Y-o-Y increase in exports to Turkey during H1CY17.

Japan, also one of the major importers, witnessed a marginal decrease of 8% in its Silico Manganese imports. India enjoys the maximum share of their import requirement however its export to Japan declined by 15% Y-o-Y in H1CY17.

South Korea witnessed a substantial fall of 45% Y-o-Y in its Silico Manganese imports during H1 2017. Moreover, Ukraine being the largest exporter to South Korea also reflected a decrease of 45% on Y-o-Y basis.

Quantity in MT
Source: Customs