Indian silico manganese prices had been increasing continuously to touch historic highs since the past few weeks. However, since late last week, prices of the material tumbled on lower domestic demand from the steel manufacturers.
It is reported that various small steel units have reduced their production levels significantly. There is speculation that the plants may shut operations unable to cope with the higher raw material prices and diminishing profit margins.
In Raipur and Durgapur, prices are hovering at around INR 98,500-99,000/tonne (t) as traders are trying to sell off their inventory quickly.
“Prices were increasing quickly on high demand due to which traders procured large volumes. But, as soon as the news of steel production cuts spread in the market, traders and smaller producers started to sell aggressively at lower prices. Higher profit margins also enabled higher negotiation levels,”, said a Durgapur-based trader.
Meanwhile, where exports are concerned, most of the Indian smelters are offering Oct-Nov shipments, while, buyers are now resisting to take such long-term positions. Although buying remained weak, prices remained firm as most exporters don’t have much quantities to offer in the spot market.
Outlook
Indian smelters are waiting for MOIL to release its prices. They expect the public sector miner to increase prices over last month, which might provide some support to the manganese alloys producers.
Meanwhile, smelters remain affirmative that as soon as the steel mills come back to operations, the prices will increase further in the domestic market.
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