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Affected by various factors such as weak global demand and oversupply in the market, Indian silicon manganese exporters have lowered their prices this week.
The export market is still under pressure, with prices dropping by $7 per ton compared to last week. The FOB price of silicon manganese 6516 decreased by $9/ton to $875/ton month on month, while the FOB price of silicon manganese 6014 decreased by $5/ton to $781/ton month on month. The higher quotation for silicon manganese 6516 was not accepted, and the seller lowered the quotation to $870-885 per ton (FOB).
Market Overview
Global pricing pressure affects export markets: Indian silicon manganese exporters face fierce competition from Brazil, Canada, and Norway, with prices ranging from $820 to $845 per ton (FOB) for silicon manganese 6516 due to high inventory levels in these countries. This pricing puts pressure on Indian suppliers, affecting profits and market share, causing them to lower their quotes to maintain competitiveness.
In addition, according to sources, due to weakened interest from Europe, Southeast Asian buyers are turning to lower priced Chinese supplies, and India's exports are facing weak demand. Smelters may lower prices or shut down production to cope with slowing demand.
Although some steel mills have initiated the bidding process for silicon manganese, overall demand remains weak. The sluggish demand, coupled with cautious market sentiment, has led to limited procurement activities, resulting in an overall sluggish situation.
Expectation
Given the current market dynamics, India's silicon manganese export prices may continue to be under pressure in the short term due to limited purchasing volume, weak demand, and oversupply. In order to maintain competitiveness, exporters may need to adjust their pricing strategies or explore other markets. However, the possibility of a significant price rebound in the short term is unlikely.
In addition, South32 will increase its manganese ore quotation for January 2025 by 0.25 USD/dmtu to 4.05 USD/dmtu (CIF China). At the same time, Eramet Comilog has set the manganese ore price for January 2025 at 4.10 USD/dmtu (CIF China) and the seed ore price at 3.90 USD/dmtu (CIF China), both increasing by 0.15 USD/dmtu month on month.