Sell-side players remained firm on offer levels, but have met with limited buying interest at these levels.
Shortage of Silico Manganese in the domestic market continues to prevail, although market participants highlighted demand at these levels are softening and believed a near-term uptick was unlikely. In Raipur, Silico Manganese 60-14 is being offered at INR 61,000 MT (Ex-Raipur). According to sources, Prakash Industries is offering Silico Manganese at INR 61,000 /MT (Ex-Champa, Chhattisgarh), unchanged from previous week’s prices. In Durgapur, market sources reported of a supply crunch for grade 60-14. Also, Tata Steel is not offering Silicomag in the market. Silico Manganese 60-14 is currently being traded in the range of INR 59,500–60,000 /MT (Ex-Durgapur).
A broker from Durgapur revealed, “There is immense shortage of Silico Manganese in Durgapur and I have concluded deals with Silico Manganese producers to the extent of 400 MT.”
In the export market, Silico Managnese prices have risen on stronger INR and acceptability of higher offers. 60-14 grade is being offered at around USD 970/MT FoB East Coast of India and 65-16 grade offered in the range of USD 1,070 /MT FoB East Coast of India.
“In India, the INR volatility made for a challenging environment, and suppliers of 65 grade are cautious of it and need to offer at higher levels,” remarked an official from one of the major Indian Ferro Alloys producers & exporters. He further revealed that Japan being a traditional market for Indian Silico Manganese is not yet accepting offers at current levels, but there is strong demand from the Middle East countries.
SteelMint assessed that the recent increase in prices is due to supply shortage in the market. And, despite acceptability of offers at higher levels from overseas buyers, domestic sales are still more attractive for Indian producers as they could receive faster payment.
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