India: Silico manganese export prices slide further w-o-w amid thin demand

• Exporters prioritise cash flow over profits amid low order visibility
  
  
• High ore prices push raw material costs above spot export realisations
  
  

Indian silico manganese export prices declined w-o-w on 27 April across major grades, highlighting persistent weakness in export sentiment. Prices of the 65-16 grade dropped by $33/t to $933/t FOB from $966/t a week earlier, while the 60-14 grade decreased by $36/t to $880/t FOB, as per BigMint's assessment.

The market remained under pressure as buyers adopted a cautious procurement strategy focused primarily on immediate consumption needs. Expectations of further price corrections discouraged aggressive bookings, leading to lower trading volumes and increased pressure on sellers to negotiate closer to buyer indications.

With limited bulk inquiries and softer bid levels setting the tone, exporters have had little choice but to reduce offers to sustain order flow. Despite stable to firm production costs, particularly from raw materials, weak international demand and ample market availability diluted sellers pricing power, resulting in a softer export market overall.

Market overview

Export offers soften as overseas demand lags and inventory risks grow: Low order visibility in markets increased risks for exporters holding inventory amid a steadily declining price trend, prompting many smelters to reduce offers in order to secure sales and maintain cash flow for monthly operational expenses. A key exporter informed BigMint that current offers are hovering around $930-940/t FOB Haldia/Vizag, but buyer interest remained subdued.

Meanwhile, smelters in Vizag highlighted mounting pressure from rising imported manganese ore costs and delayed cargo arrivals, which pushed raw material procurement costs above prevailing spot export realisations of around $920-925/t. This widening mismatch between elevated production costs and soft export prices has squeezed margins and forced producers to prioritise liquidity over profitability.

China prices dip amid subdued buying: Chinese silico manganese prices (Mn 65%, Si 17%) edged down w-o-w to RMB 5,930-6,230/t ($867-911/t) ex-works from RMB 5,950-6,250/t, as weak downstream demand continued to weigh on market sentiment.

However, the decline was limited due to firm manganese ore prices, supported by tight port inventories, overseas supply concerns, and higher logistics costs. Elevated input costs kept producer margins under pressure, restricting aggressive offer cuts despite subdued buying interest.

Outlook

Indian silico manganese export prices are likely to remain largely stable, as weak overseas demand and limited orders continue to outweigh rising imported ore costs. Higher raw material prices may limit downside, but competitive pricing and margin pressure are expected to weigh on pricing.