Kolkata, India
Owing to limited buying activity witnessed Silico Manganese market weakness continues. Silico Manganese prices slid in line with Steel prices in the Secondary market, which has corrected by about Rs. 1500/MT in last 2 weeks. Current offers for Silico Manganese 60-14 are in the range of Rs. 53,000 – 54,000 /MT. Some producers are quoting at Rs. 54,000 – 55,000 for the same grade, but are unable to conclude any deals.
SAIL has announced a tender for procurement of 49,048 MT of Silico Manganese for its various plants. The Due Date for submission of bids is on 14th May 2013. The general perception of the impact of this SAIL tender is that a tender of such huge quantity would create a shortage of Silico Manganese in the open market and result in increased prices. But, this would be in the very short-term as it has been witnessed earlier- a little increase in prices would be offset by increase in production, as most producers are currently functioning at low capacities.
Earlier in this month manufacturers have raised their offers up to Rs 2000/t over hike in power tariffs and hike in manganese ore prices by MOIL (Manganese Ore India Ltd), but that impact looked to be short lived after steel prices corrected sharply.
Manufacturers/exporters maintained their export offers at similar levels, 65/15 grade SiMn is offered in the range of $1070-1080/t FOB Vizag port and 65/16 at around $1080-1100/t FOB.
Leave a Reply