India: Silico manganese export prices stable w-o-w as prolonged negotiations delay deals

• Firm Asian demand keeps Indian export prices stable
  
  
• Lower overseas bids and delayed deals may weigh on prices
  
  

Indian silico manganese export prices remained stable w-o-w, buoyed by steady inquiries from Southeast Asian markets. However, buying sentiment from some overseas destinations softened slightly, with a number of deals yet to be concluded as buyers and sellers continued to negotiate acceptable price levels.

As per BigMint assessment, 65-16 grade prices rose by $5/t w-o-w to $923/t FOB, while 60-14 grade remained stable at around to $825/t FOB Haldia/Vizag.

Confirmed deals (as per BigMint)

Bulk inquiries fail to lift export prices amid pricing standoff : Export prices remained largely stagnant w-o-w, with a slight uptick observed in higher grades (SiMn 65-16) amid steady inquiries from Japan, Taiwan, South Korea, and Bangladesh. Market participants indicated that offer levels were largely unchanged from the previous week.

An exporter based in Haldia informed BigMint that inquiries from Europe remained healthy; however, negotiations have been prolonged as overseas buyers are seeking prices below $910/t FOB Haldia/Vizag, levels deemed unviable by suppliers given rising production and logistics costs. Exporters noted that higher transportation charges from plants to ports have further increased freight expenses.

Meanwhile, bulk inquiries from Iran for around 12,000 t were heard in the market, but deal closures have been delayed due to a mismatch in price expectations between buyers and sellers, keeping export sentiment subdued and limiting the upside in prices.

Chinese silico manganese prices hold near-term floor amid ample supply: Chinese silico manganese prices (Mn 65%, Si 17%) remained largely stable, with a marginal correction of RMB 50/t ($7/t) w-o-w to RMB 5,620-5,960/t ($830-889/t) ex-works in the week ended 15 June. Market sentiment remained cautious as weaker futures and delayed steel mill tenders limited spot activity. Despite ample supply and subdued downstream demand, participants expect prices to hover near current levels, supported by the view that the market is approaching a short-term bottom.

Outlook

According to BigMint, Indian silico manganese export prices may feel the pinch in the near term, as lower bid levels from overseas buyers and delayed deal finalisations are expected to offset support from regular inquiries and firm input costs.