Last week, despite the domestic markets experiencing a modest demand, silico manganese prices remained range-bound. In fact, the domestic market saw a considerable amount of demand, but there were few inquiries from abroad. In order to recover input costs, manufacturers across regions had to reduce production, which kept prices range-bound.
According to SteelMint’s assessment, Raipur-based producers offered at around INR 72,300/t exw, down by INR 700/t w-o-w while prices in Durgapur were at INR 71,400/t exw, lower by INR 900/t w-o-w.
Meanwhile, producers quoted for grade 60-14 at around INR 72,000-73,000/t exw-Raipur while Durgapur producers were seen quoting at INR 71,000-72,000/t exw.
However, traders offered at around INR 70,000-72,000/t exw in both Raipur and Durgapur.
Within the domestic market, SteelMint recorded trade volumes of roughly 3,500 t.
Responding to overseas inquiries, exporters offered at around $900/t for 60-14 grade, down by $15/t from last week, while prices for the 65-16 grade were assessed at $1,000/t FOB India, down by $20/t w-o-w. As a result of low inquiries from overseas, silico manganese export prices were slightly down.
SteelMint recorded trade volumes in the export market of around 1,700 t amid soft demand.
Factors limiting the price range of silico manganese
- Production cuts: Manufacturers of silico manganese made the decision to reduce monthly production by 40-50% to match manufacturing costs despite falling raw material costs and low international demand. Prices moved in a limited range as a result of this. However, India’s total production stood at 2.276 million tonnes (mn t) in CY21.
- Drop in exports: Indian producers typically export roughly 50-60% of their total output of manganese alloys. But due to weaker-than-expected demand from overseas markets, producers are forced to sell their material in the domestic market, putting pressure on silico manganese prices. Meanwhile, provisional data from Cutoms shows a drop of 4% in exports to 95,000 t in August against 98,653 t in July 2022. Furthermore exports in CY21 stood at around 1.02 mnt.
- Lower prices from major markets : Durgapur, one of the major producing regions in India, was less involved in trade amid the festive season this week and offered lower prices amid slow liquidity. Also, neighbouring states offered lower than Durgapur to create tough competion in the domestic market. As a result, domestic silico manganese prices were kept range-bound.
- Moderate domestic steel market: Domestic steel demand was moderate last week with limited inquiries for bulk bookings, which also kept prices range-bound. SteelMint’s daily steel billet index was assessed at INR 48,300/tonne (t) (- INR 400) exw-Raipur on 3 October, 2022
Outlook
In the near future, silico manganese prices may remain stable. Moderate demand for steel could support prices.
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