Silico Manganese prices have touched a 5-year high on rebounding demand coupled with limited supply.
“Undoubtedly, we are low on inventory and there is a shortage of supply but the demand has also rebounded unexpectedly,” said a producer source discussing such a sudden rise in Silico Manganese offers.
Another source pointed towards the global shortage of the commodity due to low production in China for such upswing in Silico Manganese prices. Chinese Silico Manganese production is cut down by 50%, and Indian producers see China as a prospective market to export.
Off-grade production of the commodity also remains in play being one of the reasons for the shortage of 60-14 grade.
SteelMint assessed Silico Manganese prices at INR 71,000/MT (Ex-Durgapur) and INR 70,000/MT (Ex-Raipur) but few producers from Raipur have also started quoting at INR 71,000/MT.
Demand from overseas was also observed to have gained ground as producers claimed to receive increased inquiries.
Export offers were also assessed at USD 1170/MT FOB India for 60-15 grade and USD 1050/MT FOB India for 60-14 grade, while some producers claim to have conducted deals at higher levels.
On the future outlook, Silico Manganese offers are expected to remain stable while some participants doubt its sustenance as they believe that the prices of the commodity have reached its limits.
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