Indian silico manganese prices, which had touched a historic high of around INR 100,000/tonne (t) since mid-Jun’21 due to supply-demand mismatch, are softening on low demand.
Indian silico manganese prices saw a slight, w-o-w, bounce by around INR 700-900/t on Monday, from both Durgapur and Raipur markets due to low bookings. Currently, SteelMint recorded silico manganese prices at INR 93,500/t exw-Raipur while prices from Durgapur are at INR 92,350/t exw. However, prices vary for different grades and sizes.
Lukewarm steel demand softens silico manganese market
Silico manganese demand in the domestic and export markets remained muted. High container costs and unavailability of the same dampened seaborne buying interest. Meanwhile, domestic steel mills are playing safe by booking small quantities to continue production.
Moreover, tepid steel demand has reduced the prices of semi-finished steel. This is further forcing manganese ore melting furnaces to reduce their offers.
China’s silico manganese prices up
Chinese silico manganese prices gained an upward momentum owing to supply concerns as Guangxi province, the main silico manganese production hub, received a new power cut restriction notice from the local government. Meanwhile, the world’s major steel mill, Hebei Iron & Steel Group (HBIS), increased purchase prices of silico manganese by RMB 700/t ($108/t), m-o-m, to RMB 8,650/t ($1,338/t) for Sept delivery. However, Indian producers are not able to make the most of this opportunity due to a shortage of containers.
MOIL’s manganese ore prices support silico manganese prices
Manganese Ore India Ltd. (MOIL) rolled over manganese ore prices to maintain parity with imported offers. This further supported smelters to maintain silico manganese prices with slight variations. Meanwhile, a few major manganese ore miners have reduced offers for Oct’21 shipments due to limited supply owing to high portside inventory in China.
Outlook
Indian silico manganese prices are expected to continue the downtrend in the coming weeks. However, prices may witness an upward correction if domestic steel demand improves after the monsoon.
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