Indian silico manganese prices went up by INR 1,000/t in the domestic market on improved demand. At present, the transactional prices of silico manganese are in the range of INR 60,000-61,000/t ex-plant, meanwhile, export offers are quoted higher due to increased domestic prices and appreciating rupee, but no deals have been recorded at the higher prices yet.
Currently, the prices are at INR 60,000-61,000/t Ex-Durgapur and INR 61,000/t Ex-Raipur. Meanwhile, the export prices are at $820/t for 60-14 and $880/t for 65-16 grade fob India.
Indian silico manganese prices ascend this week, on a confluence of factors namely:
- Shortage of silico manganese in Raipur market:
There is a shortage of silico manganese in Raipur, as most of the producers reduced their working capacity. Many producers who were getting subsidy on electricity until Mar-20 had been running on losses now, which forced them to reduce the operation level. - Shortage of manganese ores:
SteelMint learned from producer sources that supply from MOIL is not regular and thus it might have a serious impact on the availability of ores. Meanwhile, the imported ore inventory is also at a reduced amount with the alloy manufacturers. - Steel fetching higher prices:
Steel prices are improving and the prices for major steelmakers have increased for the month owing to the supply demand mismatch in the market post lockdown. - Imported manganese ore prices increasing in Rupee terms:
With the rupee appreciating, import of manganese ore is becoming costlier, and realization from export of silico manganese in rupee terms is lower.
Outlook:
The silico manganese prices might increase further by marginal levels due to supply-demand dynamics. Meanwhile, it is also expected that the ore prices will rise further amidst supply concern.
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