The Middle-East is proving to be the next big market for Indian Manganese Alloys exports. Iran is the largest steelmaker of MENA (The Middle East & Northern Africa) region, and most of the Manganese Alloys exported from India is believed to reach Iran (either directly or via UAE).
From the Middle-East countries, Iran had the highest crude steel output over the half-year period. In CY17, Iran alone produced about 22 MnT of crude steel. Now if Iran’s steel production grows at an average growth rate of about 10%, in CY18, Iran’s crude steel production will come to around 24 MnT (in first six months from Jan to Jun’18, Iran produced 12.5 MnT of crude steel).
As per SteelMint sources, in the wake of the trade war between China and U.S. and Iran being a major exporter of crude oil, India is unlikely to stop trade with Iran. Recently, in order to facilitate bilateral trade between the two countries and to explore the possibility of reviving Rupee-Rial arrangement to continue trade, Indian government has approved a proposal from Iranian private lender Bank Pasargad to open a branch in Mumbai. The Rupee-Rial arrangement was used to buy crude oil from Iran before U.S. sanctions were lifted against it three years ago.
Indian Manganese Alloys exports to the Middle-East during H1CY18 was recorded at 122,462 MT, up by almost 64% in comparison to H1CY16. Iran has the fastest steel production growth and is enjoying the strong and sustained growth to become a key market for semi finished steel exports. This presents plenty of promise for the Indian Ferro Alloy companies, as the Middle-East could provide a sizeable opportunity for Indian Ferro Alloy exports for years to come.
Indian Silico Manganese prices have come down sharply from the start of the Year, driven largely by limited demand for Indian Manganese Alloy from Europe, and seaborne Manganese Ore prices retreating. India for the last few years has been the world’s largest exporter of Silico Manganese, ahead of Ukraine. Indian producers have been facing strong competition from Ukraine, Norway and South Africa as both the South African Rand and Ukrainian Hryvnia have depreciated to a much greater degree over the same period and Indian producers could continue to face substantial challenges in the export markets of Europe.
Major Silico Manganese Exporters
India continues to be the largest exporter of Manganese Alloys in the world, witnessing a rise of 17% Y-o-Y during H1 2018 against H1 2017. During the same period, Indonesia recorded a fall of 25% Y-o-Y in its Manganese imports from India, while, Iran registered a mammoth 136% Y-o-Y increase in its imports from India.
Ukraine registered a decrease of 11% Y-o-Y in its Manganese Alloy exports during H1 2018 against H1CY17. Turkey remained its largest importer, with a sharp fall of over 40% Y-o-Y. However, Italy recorded a fall of 11% rise while Netherland reflected consistency in their Manganese Alloy imports from Ukraine.
South Africa, also witnessed a marginal fall of 6% Y-o-Y in its Manganese Alloys exports. United States recorded a steep 20% Y-o-Y decrease in its imports from South Africa while imports from Italy surged by 48%.
Russia exported 57,083 MT Manganese Alloys during H1 2018, against 39,856 MT in H1 2017. United States were the leading importer of Russian Manganese Alloys, registering a mammoth increase of 278%. Belarus was the other major importer of Russian Manganese Alloys.
Brazil’s Manganese Alloy export volume on the other hand is down by 15% Y-o-Y. Argentina remained its largest importer, accounting for almost 40% of Brazil’s total exports in H1 CY18.
Major Silico Manganese Importers
European Union is one of the major Manganese Alloys importers and recorded a marginal rise of 2% Y-o-Y during H1 2018 against the same period of the previous year. Ukraine is the largest exporter to EU, witnessing an increase of over 25% in its exports Y-o-Y during H1CY18, whereas, its imports from South Africa and India are down by 12.5% and 18% respectively.
USA recorded the maximum increase in its Manganese Alloys imports, registering a 38% Y-o-Y increase in its Manganese Alloys imports. South African exports to the USA fell by 25% Y-o-Y, as Australia has overtaken South Africa to be the largest exporter of Manganese Alloys to USA. US imports of Manganese Alloys remained strong in the 2nd quarter, reversing the trend seen over the first quarter, driven predominantly by strong volumes from Australia, South Africa, Georgia and Norway.
Japan, also one of the major importers, witnessed a steeep rise of 22% in its Manganese Alloys imports in H1CY18. India enjoys the maximum share of their import requirement and its export to Japan increased by 32% Y-o-Y, and moreover its imports from Malaysia almost doubled in in H1CY18 in comparison with the same period last year.
Turkey recorded a marginal fall of 6% in its Manganese Alloys imports during H1CY18 against the same period from the previous year. Ukraine remains the largest exporter to Turkey and recorded a decrease of 25% in its exports, however, Malaysia, Georgia and Norway saw a substantial Y-o-Y increase in exports to Turkey during H1CY18.
Taiwan also witnessed a fall of over 13% Y-o-Y in its Manganese Alloys imports during H1 2018. Moreover, Malaysia and India continued on a upward trajectory with regards to exports to Taiwan, whereas Australian exports recorded a sharp decrease of 60% on Y-o-Y basis.
Find out about the future of global Ferro alloys industry from experts, along with opportunities for trade at The International Ferro Alloys Conference, 5-7 September 2018 | The Oberoi, Gurgaon, NCR Delhi. For more details please visit ferro.steelmint.com.