Indian silico manganese prices seem to have bottomed out with little or no room for further correction. Most producers are now expecting the prices to go up as they anticipate a supply gap in the ore availability, which may boost up the prices on account of reduced silico manganese production.
MOIL, the largest manganese ore producer in India, reduced the prices of manganese ore by 15% for Aug’20, however, the quantity offered is too low and insufficient to cater to the domestic demand. Simultaneously, imports also went down in expectation of further fall in seaborne manganese ore prices and now the silico manganese producers are low on manganese ore inventory.
At present, the transactional prices of silico manganese are in the range of INR 59,000-59,500/t ex-plant in domestic market and surprisingly export prices are only higher by around INR 1,000/t for FOB India. Therefore, most of the producers are preferring to sell in the domestic market for now.
Currently, the prices are at INR 59,000/t Ex-Durgapur and INR 59,500/t Ex-Raipur, w-o-w down by INR 500/t in Raipur. However, a few small producers have also traded at INR 500/t lower.
Meanwhile, the export prices are stable with limited activity. There is an expectation that the export prices might boost up with the withdrawal of Merchandise Exports from India Scheme (MEIS) which provided incentives on exports. Thus, the exporters will have to increase their prices to maintain profit margins.
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