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Higher export demand bolsters India’s SiMn market
Published date: 24 March 2021



A recent increase in enquiries from overseas buyers is expected to support India's silico-manganese prices in the near term, with supply tight and most producers sold out until May.
Demand from a number of regions has picked up in recent weeks, with Indian suppliers receiving a steady rate of enquiries from buyers in Turkey, Japan, southeast Asia and the Middle East in particular. With availability limited, sellers have steadily hiked offers and Argus' India export assessment for 65pc Mn grade alloy — which is in particularly high demand from overseas — has risen to a multi-year high of $1,280-1,300/t fob east coast, up from $1,010-1,020/t fob at the start of the year and its highest since January 2018. Prices for 60pc Mn grade alloy have risen to $1,180-1,200/t fob from $920-930/t fob over the same period.
Availability is tight with most Indian producers fully booked until May and only marginal volumes available to offer in the spot market, either domestically or for export. Limited availability of containers is further constraining exports and lifting costs.
With increased competition for a limited amount of material, domestic silico-manganese prices have also risen, shrugging off a recent dip in manganese ore costs. Prices for 60pc grade alloy prices extended their gains yesterday, rising to 88,000-90,000 rupees/t ($1,212-1,240/t) ex-works from Rs83,000-84,000/t ex-works on 18 March. Market participants expect prices to rise further on tight spot supply, but domestic buyers are likely to limit their spot bookings in the coming weeks as the 2020-21 fiscal year comes to an end on 31 March.
Domestic demand is expected to hold steady and rise by mid-April as steelmakers resume restocking for the new fiscal year starting on 1 April. Some market participants suggested that with the steady rise in prices, small and medium-sized alloy producers might shift toward more silico-manganese production, which might help ease the supply shortage in the coming months.