India: Silicon manganese prices fall as domestic and overseas demand wanes

Prices of silico manganese weakened slightly as a result of the gradual fall in domestic and export market demand. However, there was fall in the production of ferro alloys owing to the electricity crisis in a few states in India. Also, the buyers showed less interest in trade as they already held a sufficient quantity of supplies with them and hence it contributed to the low prices of silico manganese.
Meanwhile, SteelMint recorded trade volumes of around 2,000 tonnes (t) amid poor demand.
In addition, producers were also affected by the power crisis and outages which further cut production temporarily.
According to SteelMint’s assessment, Raipur-based producers’ offers were at around INR 98,100/t exw, down by INR 5,000/t while prices in Durgapur were reduced to INR 95,200/t exw from last week.
Exporters offered at around $1,300/t for 60-14 grade, down by $70/t from last week, while prices for the 65-16 grade were assessed at $1,480/t FOB India, down by $70/t, as the inquiries continued to be on the lower side from the overseas market.

Why lower demand in domestic and overseas market?

• Production goes down amid lower demand: Several states in India were facing coal supply shortages to the power plants. Maintenance outages also reduced production for a short time which was expected to drive prices up. But lower demand for silico manganese helped to hold the prices down.
• Silico manganese exports down: As India’s manganese market depends much on exports demand, high freight costs and container shortage lowered prices and inquiries shifted to China.
• Indian steel market demand slow: There was bearish sentiment in the steel market, as decrease in raw material prices and low consumption of finished products led to a further fall in prices which also affect silico manganese prices.

China market overview
China’s silico manganese (60-14) prices were stable at RMB 7,550/t ($1,180/t) exw-Inner Mongolia, while the 65-17 grade was offered at RMB 8,395/t ($1,319/t) exw-Inner Mongolia. The price of silicon manganese was temporarily stable compared with the previous week’s downstream in demand, as the 1 May holiday were approaching. Some steel mills have gradually decreased their bidding and procurement in the last week.

Outlook
All indicators are pointing towards a sustained decline in demand for silico manganese, domestic and global. However, prices may go up if demand increases.