Silico Manganese prices nudged up on the back of thin supply, with reports of steady demand from end-users.

In the domestic market, Silico Manganese prices rise on shortage of supply. Current prices of Silico Manganese (grade 60-14) are INR 54,500/MT (Ex-Raipur) and INR 55,000/MT (Ex-Durgapur). According to sources, Prakash Industries is currently offering Silico Manganese at INR 52,700/MT (Ex-Champa). TATA’s branded Silico Manganese 50-12 Silicomag is being offered at INR 44,000/MT FOR West Bengal.

In Vizag, current price for Silico Manganese (60-14) is INR 55,500 /MT. In the last six months Andra Pradesh has seen 10 out of the 31 makers of Ferro Alloy industry winding up operations, unable to stem the increasing costs. These include VBC Ferro Alloys, VBC Industries, RV Alloys and ASV Ferro Alloys. Another five companies, which started operations in the last three years, are in the process of closing down, even as they knock at the doors of banks for a rescheduling of their loans. The rest are operating at less than 50 per cent of their capacities. The units in Andhra Pradesh which account for 30 per cent of the country’s production are particularly in an unenviable position. This is due to the sharp increase in power tariff and prolonged cuts in the last three years, apart from the common market conditions.

In the last three years, the tariff for the industry had been hiked from INR 2.65 per unit to INR 3.65 per unit and INR 4.85 per unit for the current fiscal. Now, the state power distribution companies have come out with fresh proposals for FY15, which will increase the tariff to about INR 6.40 per unit— a rise of 40 per cent.

[su_quote]A producer from the region remarked on this development, “If this were to happen, the entire industry in the state will have no option but shut down or declare lock-outs. We are trying to talk to the state government through the AP Ferro Alloys Producers Association.”[/su_quote]

Export Market

In the export market, prices for Silico Manganese remains firm as demand improves from European Nations and Middle-East countries. Silico Manganese 60-14 is being offered at USD 870/MT FoB East Coast India and 65-15 is being offered at USD 980/MT FoB East Coast India. Indian traders reported buying interest has reemerged and boosted trade values.

[su_quote]“The mood is better in the export market and we are receiving good inquiries. Demand is edging up bit by bit, slowly going higher,” stated an exported based in Kolkata.[/su_quote]

SteelMint assessed that demand for Silico Manganese to remain lively in this month and prices to remain firm at this level. Market watchers are of the view that there is confidence in the future market for Silico Manganese, as most market participants are holding a positive outlook.

Exchange Rate: USD 1= INR 62.37