Domestic market sentiments remained optimistic last week due to improved demand for manganese alloys, although only few international enquiries were received. As manufacturers across regions sought to recover input costs, prices continued to inch upward.
According to SteelMint’s assessment, Raipur-based producers offered material at around INR 73,000/t exw, up INR 700/t w-o-w, while prices in Durgapur were at INR 72,000/t exw, up INR 600/t w-o-w.
Meanwhile, producers’ quotes for grade 60-14 remained the same 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 71,500-73,000/t exw in both Raipur and Durgapur amid improving demand.
During the week, SteelMint recorded trade volumes of around 7,500 tonnes (t) of which manganese alloys accounted for 6,000 t.
Responding to overseas enquiries, exporters offered at around $890/t FOB for 60-14 grade, down $10/t from last week, while prices for the 65-16 grade were assessed at $980/t FOB, down $20/t w-o-w. As a result of low enquiries from overseas, silico manganese export prices fell slightly.
SteelMint recorded trade volumes in the export market at around 1,000 t amid soft demand.
Factors supporting prices
- Raw material prices improve: Imported manganese ore prices have shown some improvement on a weekly basis owing to recovery in domestic demand. The current price for Australian-origin manganese ore (lumps, Mn 46%) CNF Vizag is assessed at $4.95/dmtu.
- Rupee depreciation: Rupee depreciation against dollar is around 3-4% m-o-m, which results in a $25-30 increase in FOB value for exporters, supporting the rise in silico manganese prices. Currently, Silico Manganese is offered at around $ 990/t FOB Vizag/Haldia, India (25-150 mm, HC 65-16).
- Rise in coking coal prices: Imported coking coal prices have increased by around 3-5% on a weekly basis, which is pushing higher the cost of silico manganese production. Currently, premium coking coal CNF Paradip stands at around $304/t.
- Prices bottom out: As per silico manganese manufacturer sources, in major regions of the country prices have bottomed out since producers have not been able to recover costs.
- Moderate domestic steel market: Domestic steel demand was moderate last week with limited enquiries and bookings, which kept prices on the higher side. SteelMint’s daily steel billet index was assessed at INR 48,400/tonne (t) (+ INR 100/t w-o-w) exw-Raipur on 11 October.
Outlook
As a result of reduced manganese alloys production in India, silico manganese prices might rise in the near future. If export enquiries resume, prices have room to recover further.
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