India: Silico Manganese prices in Raipur move up by Rs. 500 /MT

The Indian Steel Industry has been lifeless and so has been the performance of the Manganese Alloys industry, as both their fortunes are linked.

Domestic demand for Silico Manganese continues to be thin, and market participants highlighted that purchasing was very low in the week gone by. An official from a Silico Manganese manufacturing Company revealed that he had not received many inquiries throughout the week. He said, “I don't see any genuine inquiries, they are just calling to check what prices are being offered by everybody.” 

According to sources, Prakash Industries is offering Silico Manganese at Rs. 47,500 /MT (Ex-Champa, Chhattisgarh), up by Rs. 1500 /MT from previous week's prices. As a result, other Silico Manganese producers in Raipur have also increased their offers by Rs. 500 /MT. Silico Manganese 60-14 is being offered at Rs. 48,500 MT (Ex-Raipur), with little or no deals concluded as the Mini-Steel Plant Association members (end-users) in Chhattisgarh are still on strike.

In Durgapur, Silico Manganese continues to be thinly traded and most producers have either opted to significantly cut-down production levels or completely shut down operations till market conditions improve. In Durgapur, Silico Manganese 60-14 is trading in the range of Rs. 50,000 – 50,500 /MT.  “The Silico Manganese market is on the ropes“, remarked a trader from Durgapur. He further highlighted the number of plants that have shut down recently and the ones that have been put up for sale.

Indian suppliers of Silico Manganese, aided by the weakened Rupee have reduced their export offers to solicit trade.  Silico Manganese 60-14 is being offered at USD 800-820 /MT FOB East-coast India, and Silico Manganese 65-16 is being offered at USD 920-930 /MT FOB East-coast India. Deals were heard to be concluded from India for South-East Asia countries like Thailand, Malaysia, and also a few countries in the Middle-East.

On the future trend, unless the Government of India takes steps to boost the sentiments of the Iron and Steel Industry in general, the Ferro Alloys industry will continue to suffer with the demand-supply imbalance.