Silico Manganese prices ended the week on a softer note as poor buying interest led to an easing in offers.
Silico Manganese prices marginally come down as demand dwindled in the domestic market. 60-14 is being offered at INR 57,500/MT (Ex-Raigarh), INR 58,000/MT (Ex-Raipur), INR 58,500-59,000/MT (Ex-Durgapur) and INR 61,000/MT (Ex-Hyderabad). Ingot, which is generally a good indicator of the market – prices have decreased by around INR 500/MT in most places across India. Market sources are of the view that buyers were not looking for serious commit and prefer to ride out the next few days as most buyers believe that Silico Manganese prices can correct further.
[su_quote]“Currently, business is thin and buying is limited from traders with no spot inquiries coming,” stated a Raipur based producer.[/su_quote]
Export Market
Buoyed by the depreciating INR against USD, the Indian players have decided to cut their offers to consummate trade, as a stronger dollar boosts the sales in rupee terms. Currently, grade 60-14 is being offered at USD 940/MT FOB East Coast India and 65-16 is at USD 1,050/MT FOB East Coast India. It is to be seen whether this latest development lead to an increase in demand from foreign buyers, as overseas demand has been quite low in the past week.
On the future trend, most market participants believe there is a possibility of a further price cut because of weak demand for finished steel during the rainy season with slowdown in construction activities.
Exchange Rate: USD 1= INR 60.22
Leave a Reply