India: Silico manganese prices decline on bearish demand outlook

Silico manganese prices decreased slightly last week due to bearish demand. Imports of raw materials and rangebound input cost movements restricted the market’s stability, leading to a fall in steel demand. The price of silico manganese fell as a result.

As per SteelMint’s assessment, Raipur-based producers offered material at around 78,000/t exw, stable w-o-w, while in Durgapur prices were at 77,600/t exw, down w-o-w.

Meanwhile, producers’ quotes for grade 60-14 remained at around INR 78,000-80,000/t exw-Raipur, while Durgapur producers quoted at INR 76500-78,000/t exw. However, traders offered at around INR 77,500-78,000/t exw in both Raipur and Durgapur amid slow demand. 

During the week, SteelMint recorded trade volumes of around 3,000 tonnes (t) of manganese alloys on the domestic market.

Responding to overseas enquiries, exporters offered at around $950/t FOB for 60-14 grade, up $35/t from last week, while prices for 65-16 grade were assessed at $1,050/t FOB, up $20/t w-o-w.

As a result of limited enquiries from overseas, silico manganese export prices fell. SteelMint recorded trade volumes in the export market at around 1,500 t amid low demand.

Market highlights

• Bearish global market: Global silico manganese prices were affected by bearish sentiments, which dampened liquidity, thus affecting domestic prices. In the domestic and export markets, silico manganese demand was limited due to mixed sentiments. Silico manganese prices dropped as a result of the low number of purchasers who expressed interest in buying at high prices.
• Cost factor: Several major producers have gone on maintenance after mixed market sentiments over a short period of time. Due to the manufacturer’s loss and high production costs of silicon manganese, it is challenging to reduce the actual transaction price, a source informed.
• Subdued steel demand: The Indian steel market remained subdued owing to fluctuations in raw material prices and low demand. As a result, many buyers are in a wait-and-watch mode when it comes to booking bulk volumes. This further created weak demand in the spot market, leading to reduced prices. SteelMint’s domestic steel billet index was at INR 44,500/t exw-Raipur on 1 November, down INR 1,500/t d-o-d.

Outlook
Silico manganese prices may fall as a result of the reduction in domestic manganese alloy manufacturing to offset the loss in sales. However, if export enquiries pick up, prices may rebound.