Indian silico manganese prices have been following a downtrend for many weeks; however, prices went up last week-end after MOIL revised manganese ore prices upwards by 7.5% for Oct’20.
This increase by MOIL has supported the silico manganese prices and helped it from falling further, especially in Raipur (Central India), where the alloy manufacturers are almost entirely dependent on MOIL. for their manganese ore requirement.
Prices in Raipur are assessed at INR 60,500/t Exw and INR 60,000-60,500/t Ex-Durgapur. However, demand remains low with limited deals concluded. Meanwhile, export prices remain stable amid thin trades and reduced demand.
Exporters believe that this month might be in a stalemate, while, renewed demand is set to come in November when the pre-New year holidays stocking-up starts in western countries. Meanwhile, the appreciated Indian currency is also not supporting the exporters.
SteelMint learned that in Iran the traders’ licences for procuring material has got cancelled. Now the manufacturers have to book ferro alloys by themselves. Going ahead, we feel that since manufacturers will buy directly, they will prefer bulk booking from limited suppliers, which might hit the smaller industries who wouldn’t be able to supply large quantities.
The downtrending finish steel market has lowered the demand for ferro alloys. Meanwhile, with the domestic manganese ore prices increasing, the current silico manganese price levels are unlikely to be altered.
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