Indian silico manganese prices stable on subdued steel demand

Indian silico manganese prices attained stability amidst sluggish buying interest from the steel mills. SteelMint assessed the current market prices of silico manganese at around INR 95,000-96,000/t exw in both Raipur and Durgapur.

Steel prices slacken on subdued demand
SteelMint observed that Indian steel prices declined owing to dull demand, and higher inventory with the traders. Although, secondary steel mills have started their operations, they are refraining from booking silico manganese as they are bearish about this market at present.

Meanwhile, demand for flat steel is also down from the exports market, adding to the buying resistance. Some silico manganese producers are offering at lower prices to spark buying interest from consumers, but are unable to whip up any excitement.

High freight hits buying interest
Seaborne buyers are not very confident of booking material from the Indian market amidst a severe container shortage. Although there is good demand from the exports market — mainly from Japan and Europe — buyers are refraining from booking the material as the higher freight rates have reduced their profit margins. Most of the Indian exporters are busy catering to the previous orders,  but have none for immediate shipments. Many producers are bound to delay their orders on container unavailability. Currently, the prices of 65-16 grade are at $1,435/t FoB India.

Manganese ore prices expected to go up
Imported manganese ore prices have been continuously sliding since the last one month due to high inventory at the Chinese ports. Rising storage fees at portside and liquidity crises prompted the sellers to destock the material at lower prices. However now, the inventory is declining due to improved production of alloys on eased restrictions. In addition to higher purchases, increased freight costs might lead to some increase in the prices of imported manganese ore.

Outlook
Silico manganese smelters’ offers are likely to remain range-bound in the spot market in an implication that prices may rise once manganese ore prices bounce up further.