Indian silico manganese prices dropped sharply w-o-w due to high selling pressure, mainly in the Durgapur region and the rest of the domestic markets are following suit.
According to SteelMint’s assessment on 14 Feb’22, currently, the transactional prices of silico manganese are lower at INR 99,000/tonne (t) exw-Raipur, and INR 96,000/t ex-Durgapur for the HC 60-14 grade. Meanwhile, exporters are offering at $1,340/t for 60-14 and $1,460/t for 65-16 grade, FOB India basis.
Weekly highlights
- High selling pressure: Silico manganese producers witnessed lack of buying interest at higher levels. This was attributed to high selling pressure last week. But, after reducing prices, producers successfully converted the inquiries into deals of around 4,000 t last week.In addition, some of SteelMint’s sources said that prices may go down to 90,000/t levels in the current market if the lack of buying persists.
- Dull demand: There is still poor demand in the domestic and export markets as Indian steel prices are moderate due to limited bulk bookings on the back of volatility in semi-finished prices.
- Ukrain-Tukery free trade agreement: The free trade agreement between Ukraine and Turkey on ferro alloys will facilitate shipments of materials to Turkey and Ukraine producers may command the market.
- INR depreciation: Export offers also went down as the INR value depreciated against the dollar. This also resulted in a fall in prices of silico manganese.
China’s market reviews
Silicon-manganese (60-14) market prices are stable in China, with offers in Inner Mongolia at RMB 7,550/t, and down by RMB 500/t in Guizhou to RMB 7,100/t (ex-works) prior to last week. The prices will likely remain stable in the short term as bidding guidance of Northern Steel, supply-demand dynamics and environmental protection policies will impact the silicon-manganese market.
Outlook
Producers started selling at lower prices after observing a bearish market. Prices may be under pressure in the near term if bearish trends continue.
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