Indian Silico Manganese prices are under pressure amid sluggish steel market. Producers are underselling the product as they are in a liquidity crunch. Most Market participants believe that the prices may continue to be in a downtrend as the market for the finished products is suffering. SteelMint learned that the Steel Mills are sitting with enough inventory for the time being and hence, the buyers are quite aggressive at negotiating. “The prices are falling at a fast pace, and until and unless the Steel Industry revives there is lesser hope for the Ferro Alloys to revive”, said a producer.
Demand in the Domestic market is dull, producers are continuously reducing prices to entice buyers. A few producers are underselling as they want to clear the inventory. However, this situation is bringing down the market prices, and the producers are driven to press down their prices to lure the customers. Prices in Durgapur were down by INR1000/MT, while in Raipur the offers remained unchanged. In Durgapur, Silico Manganese 60-14 are being offered in the range of INR 65,500-66,000/MT Ex-Durgapur. In Raipur, the prices are at INR 66,000/MT. In the Export market, the demand remains moderate, producers are offering 60-14 grade in the range of USD 940-950/MT and 65-15 is being offered at USD 1040/MT
On the future outlook, the demand looks to remain low in the near future, as the producers are sitting on adequate inventory. It is highly unlikely for the producers to receive any new demand outside the regular demand.
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