Indian silico manganese export prices gain w-o-w on improved inquiries

• Currency volatility and cost inflation support export market
  
  
• Chinese silico prices rise RMB 50/t on firm cost base
  
  

Indian silico manganese export prices recovered on stronger bulk booking inquiries and rising USD-linked manganese ore costs. With Indian smelters relying on imports for around 70% of ore requirements, higher input costs supported offer increases despite thin margins. As per BigMint, 65-16 grade prices rose by $22/t w-o-w to $904/t FOB, while 60-14 grade gained $6/t to $804/t FOB, Haldia/Vizag.

Higher landed ore costs drive up export prices: Smelters maintained firm offers amid elevated input costs, as the INR depreciated against the USD to around INR 96/USD, increasing the landed cost of imported manganese ore, which is largely procured in dollars. A Durgapur-based producer informed BigMint that although key overseas miners reduced June shipment offers, the stronger USD continued to squeeze margins. The source noted that production below $880/t FOB for 65-16 grade was unviable. Recent deals for 1,000-1,500 t were concluded around $904/t FOB, supporting sentiment and prompting sellers to raise offers to $910-915/t FOB. While margins remain under pressure, the price recovery has helped sustain production.

Fresh export orders under negotiation provide support to prices: Rising inquiries from Southeast Asia, coupled with fresh buying interest from Europe, have provided support to Indian silico manganese export prices. Market sources indicated that inquiries for around 5,000 t of silico manganese across various grades are currently under negotiation, with expectations of additional bookings in the near term, potentially lending further support to market sentiment and prices

Chinese prices edge up w-o-w on cost support, demand remains cautious: Chinese silico manganese (Mn 65%, Si 17%) prices rose by RMB 50/t ($7/t) w-o-w to RMB 5,680-6,020/t ($840-890/t) exw. The market remained largely stable as futures retreated from earlier sentiment-driven gains and buyers continued cautious, need-based procurement. Manganese ore prices at ports stayed weak but stable, while firm coke prices provided moderate cost support. However, subdued downstream demand and pressure on steel mill margins continued to limit any significant upside.

Outlook

Indian silico manganese export prices are likely to remain firm, supported by rising inquiries from Southeast Asia and Europe, along with higher import-linked ore costs. However, weak global steel demand may limit further upside.