Given the underlying weakness in the Indian steel market, sellers are getting increasingly aggressive to conclude deals.
Silico manganese prices slipped again as sagging confidence levels deterred buyers from committing. Currently, 60/14 grade is being traded at around INR 55,500/MT (ex-Raipur). In Durgapur, producers were offering Silico manganese at INR 56,000/MT last Wednesday, but were unable to fetch any offers, so they have further reduced prices and now they are offering at INR 55,000/MT (ex-Durgapur).
Most Silico manganese producers have opted to cut production levels in sight of poor demand from steel mills.
A Silico manganese producer based in Raipur remarked on the current market scenario, “Silico manganese prices are depressed by persistent problem of output overcapacity in India and demand has failed to match supply.”
According to sources, Prakash Industries is presently not offering Silico manganese in the market.
“Nobody wants to buy now and be stuck with it, while, the market keeps tanking,” mentioned a trader based in Raipur.
Export Market
In the export market, Indian Silico manganese FoB prices continued to decline sharply on account of weak Rupee and willingness by sellers to lower prices to attract buyers. However, most Indian producers of Silico manganese reported of poor overseas demand and seemed gloomy over the current market situation. Export offers for 60-14 grade are USD 890/MT FOB EastCoast India and 65-16 grade at USD 990 /MT FOB EastCoast India.
Indian producers said prices were lower and sentiment was increasingly negative. The lack of end-users coming into the export market continued to worry participants.
A Kolkata based producer remarked, “Weak Rupee and low steel demand were the two factors constraining prices.”
Market sentiment in India remained unoptimistic with most seeing little chance of any upswing in prices. Whereas, some agreed that there could a further dip in prices in the near-term.However, nobody expected a plunge, as many felt the market was already close to the bottom.
Exchange Rate: USD 1= INR 61.87
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