- Demand from Europe softens amid economic crisis
- US imposition of AD duties limits export scope
Indian silico manganese export offers declined by approximately $16/tonne (t) w-o-w, driven primarily by limited trade activity and persistent global challenges.
BigMint’s assessment on 4 November 2024 revealed a downtrend: the 65-16 grade saw a sharp decline of $23/t to $900/t FOB, while the 60-14 variant fell by $10/t to $822/t FOB. Major producers in Vizag and Raipur were compelled to keep their 65-16 grade prices nearly flat, within an FOB range of $915-$925/t, owing to lower asking rates.
Confirmed deal (as per BigMint)
Global market updates
Headwinds from global economic, trade challenges: Indian exporters encountered significant challenges in finalising deals amid global economic challenges. First, the ongoing economic crisis in Europe, coupled with soaring electricity prices, has dampened demand for Indian silico manganese. This made it increasingly difficult for Indian exporters to finalise deals with European buyers.
Simultaneously, the imposition of anti-dumping (AD) duties by the United States, a major market, on Indian silico manganese contributed to limited export opportunities.
While Southeast Asia serves as an alternative market, purchase activity has been subdued in recent times, with buyers exerting pressure on sellers to reduce prices.
Furthermore, the conclusion of a few deals at lower prices around $890/t FOB Haldia for the 65-16 grade, reinforced buyers’ expectations of potential price drops. This further pressured Indian exporters to offer more competitive pricing.
China’s silico manganese market remains firm: The Chinese silico manganese market remained stable this week amid cautious market conditions. Prices (Mn: 65%, Si: 17%) stood at RMB 6,140-6,540/t ($865-$922/t) exw, including taxes, having witnessed a slight uptick of RMB 130/t ($18/t) w-o-w.
Outlook
Indian silico manganese export prices are expected to remain stable due to market uncertainty. Production cuts by domestic smelters may support prices.
Article Credit: Bigmint
