India: Silico manganese market bearish as weak sentiments prevail

Silico manganese prices in India remained bearish last week amid weak sentiments and subdued overseas demand.

According to SteelMint’s assessment on 12 September, Raipur-based producers floated offers at around INR 74,700/tonne (t) exw, down by INR 900/t w-o-w, while prices in Durgapur were at INR 74,000/t exw, down INR 1,600/t against last week.

Responding to overseas enquiries, exporters offered 60-14 grade material at around $940/t, down $20/t from last week. Prices for 65-16 grade were assessed at $1,040/t FOB India, down $20/t w-o-w.
Meanwhile, SteelMint recorded trade volumes of around 4,500 t in a shrinking market.

Factors affecting prices 

• Lack of buying interest and uncertain market conditions led to the lack of international enquiries. In comparison with offer prices, seaborne buyers sought material at much lower prices. It was difficult for sellers to sell material at such low prices, which led to low export transactions. Consequently, prices for silico manganese dropped slightly.
• Indian steel prices remained weak due to the decline in demand, which led to excess inventory at steel mills. As a result, prices of silico manganese fell.

China market overview
China’s silico manganese (60-14) prices are stable at RMB 6,400/t ($1,920/t) exw-Inner Mongolia, while 65-17 grade was offered at RMB 7,200/t ($1,039/t) exw-Inner Mongolia, up RMB 125/t.
China’s silico manganese market is on a wait-and-watch mode, with production recovery for the downstream factories likely to influence silico manganese prices.
However, silico manganese futures on the Zhengzhou Commodity Exchange (ZCE) for October delivery rose to RMB 7,248 /t on 13 September 2022.

Outlook
Silico manganese prices are expected to remain bearish in the coming weeks due to the downtrend in the domestic market.