Escalating conflict in the Middle East has severely disrupted India’s manganese alloy exports, creating one of the most challenging operating environments in recent years. 

India normally exports 500,000 to 600,000 tons of manganese alloys annually to countries such as the United Arab Emirates, Turkey, Egypt, Qatar, Oman, Bahrain, and Saudi Arabia. However, rising security threats and soaring insurance costs have forced many shipping companies to suspend services to Europe, North Africa, and the Middle East. As a result, about 40,000 to 50,000 tons of monthly shipments have effectively stopped, with exports stalled for nearly two weeks. 

To avoid risks near the Suez Canal and the Strait of Hormuz, many vessels are rerouting around the Cape of Good Hope. This longer route has reduced shipping capacity and extended delivery times, sharply increasing freight and fuel costs.

Rising logistics and raw material costs are squeezing producers’ profits while weakening export competitiveness. Buyers have delayed contracts due to price uncertainty, leaving much of the market in a wait-and-see mode. 

If the conflict continues, freight rates could surge by 30-50%, further pressuring the industry and potentially pushing down manganese alloy prices in the short term.