Indian silico manganese prices remained stable amid low demand and moderate enquiries from overseas markets. Mixed market sentiments lowered the interest of silico manganese buyers to go for bulk purchases, which resulted in prices remaining stable.
According to SteelMint’s assessment on 22 August, 2022, Raipur-based producers offered material at INR 79,300/t exw, which was stable w-o-w, while Durgapur prices stood at INR 79,000/t exw, which was almost unchanged from the previous week.
In response to overseas enquiries, exporters offered 60-14 grade material at around $970/t and prices for 65-16 grade were assessed at $1,070/t FOB India. SteelMint recorded trade volumes of around 7,800 t in a weak market.
Factors keeping prices stable
- Due to the high production cost of silico manganese, manufacturers are worried about selling at low prices in the export markets. On the other hand, demand in the domestic market remained moderate. Therefore, prices remained stable.
- Meanwhile, manganese ore import prices were also down 2% w-o-w. Currently, the price of manganese ore (37%) from South Africa is about $4.05/dmtu CNF India. This has also encouraged producers to keep manganese ore prices stable.
- Steel prices are under pressure due to moderate demand, which has affected distributors and sellers’ procurement cycles and kept the domestic market quiet. In turn, silico manganese prices remained stable.
China market overview
Silico manganese (60-14) prices in China are stable at RMB 6,400/t ($935/t) exw-Inner Mongolia, while 65-17 grade is being offered at RMB 7,075/t ($1,033/t) exw-Inner Mongolia.
However, silico manganese futures on the Zhengzhou Commodity Exchange (ZCE) for October delivery climbed w-o-w to RMB 6,998 /t on 22 August.
Outlook
Silico manganese prices in India are expected to remain rangebound with marginal fluctuations due to mixed sentiments in the market.
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