Indian silico manganese prices have softened this week amidst low demand in the domestic market. Demand has been low since the past few weeks, meanwhile, domestic buyers are waiting for the new round of MOIL’s manganese ore price revision.
There is a general expectation in the market that MOIL will reduce prices of manganese ore in line with the falling seaborne ore prices. Hence, buyers are delaying their procurement of silico manganese on expectation of lower prices in the coming week.
Meanwhile, secondary steel production in the domestic market is down and steel producers are holding sufficient silico manganese inventory, which further adversely affected the demand for silico manganese.
SteelMint’s assessments for silico manganese on 27-Oct is as follows:
Ex- Durgapur: INR 58,500 – 59,000/t;
Ex-Raipur: INR 58,000 – 58,500/t;
Exports (60-14): USD 800-810/t, and
Exports (65-16): USD 850/t.
The export market also remained dull and in addition to that, the appreciated Indian currency has also put pressure on exports. Generally, the difference between 60-14 grade and 65-16 grade is around $80-100/t, however, the price of 65-16 grade have fallen sharply as the producers want to liquidate stocks so that they can procure higher-grade manganese ore, which is currently available at lower price levels.
Outlook:
Market participants are of the opinion that Indian silico manganese prices might fall further, owing to the dull demand and downtrending manganese ore prices. Meanwhile, it is also anticipated that MOIL will reduce prices for November and Indian producers will have to adjust prices lower to generate buying interest. Hence, the silico manganese market is not expected to pick up anytime soon.
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