Silico manganese prices in India dropped marginally w-o-w owing to a markdown in the steel market. Steelmakers are reluctant to book large quantities in hopes that prices of silico manganese may reduce further. However, demand is gaining ground after a month as many domestic steel mills are low on inventories.
According to SteelMint, a drop of around INR 750-900/tonne (t) was witnessed w-o-w on 20 Sept’21 from the major silico manganese production belt in India. Currently, Raipur-based producers are offering at INR 91,050/t exw while Durgapur smelters are offering at INR 90,200/t exw.
Dull steel market squeezes bookings
According to sources, the domestic steel market is facing a downward momentum due to the rainy season. However, stocking up of silico manganese might start soon ahead of the festive season.
A few major silico manganese exporters are getting good inquiries for long-term contracts for the supply of silico manganese before the final quarter.
Green shoots of optimism on increased inquiries
Robust inquiries of silico manganese have been witnessed since the start of the week. This further supported producers to keep prices firm. However, some deals took place at slightly lower prices for long-term business.
Indian silico manganese market dynamics vary from location to location. Raipur-based producers are getting good inquiries. However, many are unwilling to sell the material at lower prices. In addition, producers remain optimistic that prices may pick up soon as the festive season arrives.
On the contrary, Durgapur-based producers are struggling in the market due to limited exports on account of container issues. Thus, the allocation of quantities is mostly concentrated in the domestic market, creating a situation of oversupply.
Outlook
Silico manganese producers are maintaining an optimistic outlook as they believe prices may increase in a fortnight as export demand picks up.
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