Indian silico manganese prices increased by upto INR 4,000/t w-o-w owing to robust domestic market sentiment. The steel prices in India is on a continuous uptrend, which is providing the ferro alloys producers with an opportunity to increase their offer levels.
However, after a continuous six-week period of firm demand, the market is now experiencing a dullness. The sharply increased prices are getting limited acceptance in the domestic market. Buyers have limited their inquiries in an expectation that producers might soften their offers. Meanwhile, the major silico manganese producers are all having a cushion of orders for the next month, which is preventing them from reducing the prices right away.
In the export market, offers have also increased as major producers are overbooked and are currently not offering in the market. However, since yesterday evening the export market is cautious about the mutated virus strain found in the UK, which has propagated a negative sentiment in the global market. Meanwhile, most of the demand for the new year has been already met, and most buyers are out of the market for Christmas holidays.
Price Assessments:
Silico manganese 60-14 in Raipur is being traded in the range of INR 68,500-69,000/t ex-plant and in Durgapur at around INR 67,000-68,000/t ex-plant. Meanwhile, in the export market, FOB prices of 60-14 and 65-16 grades are at $910-920/t and $1010-1020/t respectively.
Outlook:
Prices of silico manganese might be stable for the upcoming week, due to limited acceptance from the buyers in the domestic market at such high levels.
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