India: Silico manganese prices continue to fall amid limited demand, higher inventory

India’s silico manganese prices declined marginally as weak manganese alloys sentiments dampened domestic demand. Both domestic and export customers resisted buying at the current levels, which resulted in low inquiries. Meanwhile, higher inventory in the domestic market has also played a vital role in the silico manganese price downtrend. The prices of silico manganese dropped marginally as a consequence.

As per SteelMint’s assessment on 12 July 2022, Raipur-based producers offered the material at INR 82,250/t exw, a marginal fall of INR 950/t w-o-w while prices in Durgapur dropped by INR 1,600/t to INR 81,000/t exw.

Responding to overseas inquiries, exporters offered the 60-14 grade material at $1,035/t, down by $60/t. The 65-16 grade fell $50/t to $1,150/t FOB India. SteelMint recorded trade volumes of around 5,600 t this week.

Factors keeping silico manganese prices down

• Higher inventory: Silico manganese prices were dragged down by low demand and higher inventory in the overseas as well as domestic markets. According to sources, the prices of silico manganese in the European market were lower than in the Indian market, which pushed down the prices.
• Prices of coking coal fall by 14%: Coking coal prices dropped 14% w-o-w to $258/t owing to uncertain sentiment in the steel market. This also affected the prices of silico manganese.

On the contrary, India’s steel prices climbed up in response to moderate demand, with buyers showing more interest in buying before the monsoon.

China market overview
Silico manganese (60-14) prices in China were stable at RMB 7,150/t ($1,066/t) exw-Inner Mongolia, while the 65-17 grade was being offered at RMB 8,000/t ($1,193/t) exw-Inner Mongolia. Muted demand and fluctuations in the futures market led to a stalemate in silico manganese prices.

Meanwhile, silico manganese futures on the Zhengzhou Commodity Exchange (ZCE) for September 2022 delivery recorded a marginal fall w-o-w to settle at RMB 7,7620 /t on 12 July 2022.

Outlook.
Prices of silico manganese might remain stable in the short term. Moderate steel demand might contribute to keeping prices firm.