Indian SiMn up as Ukraine crisis fuels fresh enquiries

Indian silico-manganese prices have jumped to their highest levels since November as Russia's invasion of Ukraine fuels widespread supply concerns and a flurry of enquiries from buyers both overseas and locally.

Export prices for 60pc grade alloy were assessed at $1,450-1,500/t fob east coast yesterday, up from $1,280-1,300/t fob on 24 February. Prices for 65pc grade alloy also increased to $1,580-1,600/t fob east coast from $1,380-1,400/t fob on a rise in enquiries. Some sellers are offering 65pc grade alloy as high as 1,620-1,650 roubles/t ($15.23-15.51/t) fob but no deals were confirmed at this level.

International supply concerns are also having a knock-on effect on the domestic market, as Indian steelmakers start shoring up inventories in case significant volumes are diverted to worried buyers in Europe and elsewhere. Domestic prices for 60pc grade alloy jumped to Rs110,000-111,000/t ex-works on 1 March, up from Rs92,000-93,000/t on 24 February, a level not seen since 9 November 2021.

Market participants are also monitoring potential shifts in steel trade flows which could impact the ferro-alloy demand landscape, noting that the loss of Ukrainian steel supply and restrictions on Russian steel exports could lead steelmakers in western and central Europe to increase output in the medium-term, opening up additional opportunities for Indian alloys to trade into the continent.

India's silico-manganese and ferro-manganese markets are also being bolstered by rising ore costs. State-owned producer Manganese Ore India (Moil) previously lifted its manganese ore prices for March shipment by 10-15pc month on month, depending on the grade February, providing a reference point for India's wider manganese ore market.

By Samil Surendan