India is the largest exporter of silico manganese in the world, and almost 40% of its production is exported. However, with the recent appreciation of Indian currency, the export competitiveness of India dropped as the negotiation tolerances shrank. Meanwhile, the exporters are worried about the uncertainty over the benefits under MEIS (Merchandise Exports from India Scheme) validity.
One of the major exporters revealed to SteelMint that since the past week exports have dried up and thus the pressure to sell in the domestic market is increasing. Meanwhile, the domestic market is also affected by shrinking demand from the steelmakers. Currently, the offer prices are at around INR 61,000/t Ex-Raipur, however, deals are being concluded in the range of INR 60,500-61,000/t. Similarly in Durgapur also the quoting prices remain at INR 62,000/t, but deals have been concluded at INR 61,500/t.
Although, the producers in Raipur are waiting for MOIL to release their prices for Sep’ 20 but are not sure if it will have much impact on the silico manganese prices.
Producers are waiting for the exports market to pick up. Meanwhile, the prices remained stable in the market.
Outlook
The dull conditions in the silico manganese export market might not last long and in the coming weeks, there will likely be increased demand from the European countries.
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