Indian silico manganese prices have gone down marginally with a price correction in steel prices. With steel demand falling, the silico manganese demand is also following suit. The supply shortage of silico manganese has eased up now in Raipur. Although, offer prices remain unchanged w-o-w at INR 63,000/t the deals are being concluded at INR500/t lower than the quoted prices.
One of the major silico manganese producers shared with SteelMint that they closed a deal at INR 62,500/t on Saturday; however, today no deals have been concluded, as the buying interest is quite low. Meanwhile, a trader of manganese alloys pointed out that ascertaining a price is difficult as deals could happen at varied prices and future pricing will depend on the steel demand. The probability of prices falling are on the higher side as the selling pressure is building upon the producers.
Imported Manganese ore prices:
Manganese ore prices fell marginally this week as the spot market in China remained mostly silent with low transactions. Due to higher inventories at Chinese ports and the selling pressure on the miners, manganese ore prices have corrected downwards. This fall was rather unexpected for the Indian manganese alloy producers as they anticipated the prices to go up further due to supply concerns, yet the unprecedented situation of lower cash flow and down trending demand in the biggest buyer of manganese ore, China has forced the African miners to lower the prices to entice buying.
Outlook:
Although many of the producers are firm with their prices and are not willing to bring down their offers yet, there is a growing possibility that silico manganese prices will come down marginally due to increased selling pressure. Meanwhile, the exporters are baffled with the uncertainty over the benefits under MEIS validity.
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