Silico manganese export prices in India are falling, influenced by decreased trade and declining futures.

Export prices for Indian silico manganese have experienced a weekly decline, with the 60-14 grade down $14/t and the 65-16 grade down 1% ($8/t). Limited trade and recent bulk shipments at lower prices to Europe and Turkey have kept prices slightly lower. Despite some export inquiries for low-grade 60-14 silico manganese, competitive pricing from Malaysia and China has prompted negotiations between buyers and sellers, leading to a slight week-on-week drop in prices. Sellers, mindful of the high production costs, were cautious about further reductions to avoid compromising margins. As of November 24, SteelMint's evaluation indicated prices for the 60-14 grade at $751/t FOB, down $14/t FOB week-on-week, and $832/t FOB, down $8/t FOB week-on-week.

Additionally, the reduction in electricity charges by INR 1.68/unit for FY'24 in the Andhra region has brought relief to local industries, leading to resumed production and an anticipated restoration of material availability. This development is expected to put pressure on sellers in Raipur and Durgapur to lower manganese alloy prices.

On the global stage, the Chinese silico manganese market is experiencing a sluggish period marked by low trade activity. The recent dip in steel prices has heightened trader caution in manganese alloy dealings, contributing to a lack of market supply liquidity. Silico manganese (65-17) prices in China have maintained stability week-on-week at RMB 6,500/t ($894/t). Traders are proceeding cautiously amid limited market liquidity, and many are adopting a wait-and-see approach as steel mill bidding continues to drive prices down. Simultaneously, the Indian market grapples with liquidity constraints and fluctuations in steel prices, with manganese alloys receiving limited support from both domestic and international steel markets.

Adding to the overall scenario, China's Zhengzhou Commodity Exchange (ZCE) witnessed a decrease in silico manganese futures prices for February 2024 deliveries, dropping by RMB 144/t ($21/t) week-on-week to RMB 6,496/t ($921/t) on November 27, 2023.