Silico Manganese prices fell as buying dented owing to low demand and softening steel market.
Silico Manganese prices fell for the 3rd week with demand dented as buyers were withdrawing offers owing to diminishing steel margins. 60-14 grade is being offered at around INR 57,500/MT (ex-Raipur), INR 58,000/MT (ex-Durgapur) and INR 59,500/MT (ex-Hyderabad). According to sources, Prakash Industries is offering Silico Manganese at INR 56,000/MT (ex-Champa, Chhattisgarh). Market sources said outlook is pessimistic because of downtrend in demand. Most Silico Manganese producers have opted to reduce production levels viewing poor demand from steel mills.
[su_quote]“Buyers are pessimistic about buying material, as finished steel market is not faring well,” remarked a producer from Raipur.[/su_quote]
Export Market
In the export market, deals and offers were sparse this week because participants were not immediately seeking material after returning from holidays. In sight of poor demand and aided by the weekend INR against USD, Indian Silico Manganese suppliers have decided to correct their offers to consummate trade, as a stronger dollar boosts the sales in rupee terms . Currently, 60-14 grade is being offered at USD 930/MT FoB East Coast India and 65-16 grade is at USD 1,040/MT FOB East Coast India.
[su_quote]“The export market has dented with low buying interest and so Indian producers have reduced offers to garner greater buying interest,” stated a Kolkata based producer.[/su_quote]
Market sources reported that sentiment is weak as finished steel market has been down. SteelMint assessed that the market is in a generally bearish condition and prices are close to bottom.
Exchange Rate: USD 1=INR 61.23
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