Indian silicomanganese prices corrected w-o-w as low demand hit the market. This decline is attributed to the lingering bearish sentiment in the semi-finished steel market. The prices in steel fell by 6.4% w-o-w today. Thus, the buyers have taken a backfoot on any procurements at higher costs.
Meanwhile, suppliers of silicomanganese who were enjoying the trail of increasing prices are now worried about the downtrend in the procurement attitude of the buyers. Producers expect that the prices might soften further if they are unable to conclude any deals this week. However, in Durgapur, many producers who had increased their ferrochrome production continue to hold their offer prices firm.
The manganese ore prices are in an uptrend mainly due to increased freight costs. The unavailability of containers is becoming a major bottleneck. However, the increase in the manganese ore prices was relatively soft as compared to previous weeks, owing to the lesser buying interest from China.
Currently, prices of silicomanganese in the domestic market are hovering at around INR 68,000-69,000/t Ex-works, with most of the works happening at around INR 68,500/t both in Raipur and Durgapur. Meanwhile, in exports, the container shortage is intense and therefore is discouraging many producers from exporting. Thus, the situation of oversupply has hit the domestic market yet again.
Outlook:
Prices of silicomanganese are expected to go through further corrections in the coming week due to lower demand in the domestic market. Meanwhile, manganese ore prices are expected to increase, but at a slower pace.
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