- Indian silico manganese prices soften;
- South East Asian countries unwilling to accept higher offers;
- Higher grade ore offers rebound.
The Indian silico manganese market softened as domestic demand waned after induction furnaces reduced their steel production levels. However, major producers who booked ample amounts of the material at higher prices, remain sold out till next month and are reluctant to reduce their offered prices. But a few producers, who are solely dependent on the domestic spot market, have reduced their offers on fears that inventory may pile up.
Although the prices in the European market are skyrocketing due to supply concerns, the prices in the exports market for India keep correcting amidst low acceptance of higher prices from South East Asian countries. Most of these countries have procured enough volumes in an expectation of further price hikes and are now reluctant to accept higher prices.
Meanwhile, Malaysian plants have started their operations and the Chinese exports of silico manganese at lower prices are disrupting the stability of export offers from India. Currently, offers are at around $1,450-1,470/t FoB India for 65-16 grade. However, few deals for European countries were also concluded at around $1,500/t FoB India.
There is a huge container shortage from the eastern ports of the country, which is also creating more pressure on the sellers in that region, to sell in the domestic market, as per market sources. Current domestic offers are at INR 96,000-96,500/t ex-Raipur and INR 95,000-95,500/t ex-Durgapur. However, very limited deals in Raipur were also concluded at around INR 95,000/t and the buyers are insisting on the lower prices.
The higher-grade manganese ore prices increased by around 4% w-o-w amidst increasing freight crates. Major Brazilian manganese miners commented that with the current prices of freight, the Chinese port prices are not supportive and they might have to reconsider the supplies. Meanwhile, there is scarcity of South African carbonate offers in the Chinese market, which led to the increase in spot offers, and this might get reflected in the offers next week.
Outlook
According to the silico manganese smelters, prices might rebound shortly, as the sentiments for semi-finished and finished steel have improved as compared to the previous week.
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