Indian silico manganese prices dropped w-o-w on sluggish domestic demand. Buyers are refraining from booking the material at higher prices post-allocation of major tenders at lower prices.
According to SteelMint’s assessment on 8 Feb’22, currently, the transactional prices of silico manganese are lower at INR 101,250/t exw-Raipur, and INR 99,000/t ex-Durgapur for HC 60-14 grade. Meanwhile, exporters are offering at $1,340/t for 60-14 and $1,500/t for 65-16 grade, FOB India basis.
Weekly highlights
- The tender for 10,500 t of silico manganese was concluded at a lower-than prevailing price. As a result, small buyers were prevented from booking the material at higher levels. As a result, domestic demand is muted. These further pushed producer to decrease their offers.
- In contrast, Indian steel prices are supportive due to the cost of raw materials in most of the regions despite weak demand and little buying. It encourages smelters to be on the higher side.
- Furthermore, major producers are busy fulfilling government and export orders, while small producers have reduced their prices to lure customers. This week, however, they failed to pick up some bulk deals due to poor demand as some buyers are waiting for China’s markets to reopen.
China’s market review
The silicon-manganese (60-14) market price was stable with marginal growth in some provinces before the Spring Festival, with the offer in Inner Mongolia at RMB 7,550/t, and in Guizhou at RMB 7,600/t (ex-work prices). Steel mills in the northern part of China have 1-2 weeks of pre-holiday inventory accumulation and digestion time, so they will not start purchasing manganese ore immediately after the festival. The market demand for silico manganese is expected to increase once steel mills start bidding.
Outlook
Producers are in a wait-and-watch mode, anticipating no further downward correction after the Chinese New Year holiday despite poor demand.
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