Indian silico-manganese prices remain stable despite low demand in the domestic market. Prices have been down-trending since the past month due to the deteriorating demand and high inventory with the steel manufacturers. Silico-manganese producers are troubled by the liquidity crunch due to a prolonged economic disruption from the pandemic. Meanwhile, few producers in Raipur have been reported to reduce the production levels due to the lacklustre demand and oversupply in the domestic market.
Furthermore, the manganese ore inventory with the silico-manganese producers are low and now they are in a wait and watch mode as they believe that the imported ore prices might fall further. Currently, the prices of ores in the domestic and global market are still too high to procure and produce, at such low silico-manganese prices prevailing in the market. However, if the manganese ore prices fall further it will drag the prices of alloys along with it.
Currently, the prices of silico-manganese in the domestic market are at INR 59,500/t Ex-Raipur and INR 60,000/t Ex-Durgapur. Meanwhile, in the export market, the producers are trying to pull up the prices. However, the prices in the export market are low and are being traded in the range of $780-800/t fob India. A deal was reported to be concluded by a merchant exporter at around $800/t CIF for the western Asian region. Due to the current market situations, the buyers are more aggressive for negotiating and are demanding 60-14 grade for $760/t levels, but such levels are yet to be accepted.
Prices of silico-manganese might remain stable for the week as the producers are in the bottom line and they are wary of further decline in demand. However, the manganese ore prices in the upcoming weeks might be a deciding factor for the silico-manganese prices.
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