- Weak demand, low Chinese offers impact silico export prices
- Inventory backlog, too, impacts prices
Silico manganese export prices declined this week owing to demand-supply disparity in the market. According to BigMint’s assessment on 26 February 2024, the 60-14 grade was assessed at $828/t FOB, down $17/t, while 65-16 grade prices were at $930/t FOB, down $15/t.
Confirmed deals
Global market
Demand shrinks in Europe: European demand witnessed a setback after reopening of the Chinese market after the CNY (Chinese New Year) holidays. Competitive quotes from China have shifted European interests to buying from the Indian market, resulting in an export price crunch for Indian silico manganese.
65-16 silico manganese deals from China were concluded to the EU at $880-$890/t FoB levels, which put pressure on Indian sellers and compelled them to maintain international parity.
Increased inventory at ports: Portside inventories rose due to the ongoing container shortage, which has become the point of concern for market players. Furthermore, it has been observed that some sellers are troubled by higher freight charges and ongoing shipment delays. On the other hand, the Red-sea issue has been a major point of concern over the last many weeks.
Effect on Italian exports: The transit time for shipments to Italy has been impacted by the rise in the duration of shipping from 30 to 50 days. Because of this longer lead time, sellers are forced to offer discounts in order to stay competitive in the Italian market.
Outlook
BigMint expects a minor recovery in silico manganese export prices in the near term, as the recent increase in the price of imported manganese ore grades (37% South African and 46% Australian) of $0.1/dmtu may result in higher production costs. This may result in a slight rise in export prices.