India: Low demand drags down silico manganese prices w-o-w

Indian silico manganese prices dropped further due to low domestic demand and production cuts taken by several mills amid bearish sentiments.

Due to the fluctuation in raw material prices, buyers reduced their bids which resulted in a drop in silico manganese prices w-o-w.

As per SteelMint’s assessment, Raipur-based producers offered material at around INR 72,500/t exw, down INR 2,900/t w-o-w. Offers in Durgapur stood at INR 72,000/t exw, down INR 3,200/t w-o-w.

Offers for 60-14 grade silico manganese stood at INR 72,500-73,000/t, both on ex-Raipur and Durgapur basis. Whereas, offers from traders for the same grade were at INR 71,500-72,500/t exw in both the markets.

During the week, SteelMint recorded trade volumes of 3,500 tonnes (t) of manganese alloys in the domestic market.

Responding to overseas enquiries, exporters offered the 60-14 grade at $910/t FOB, down by $25/t from last week, while prices for the 65-16 grade were at $1,000/t FOB, falling by $40/t w-o-w. Silico manganese export prices dipped as a result of few concluded inquiries from abroad.

About 1,500 t of export deals were recorded this week amid softening demand.

Factors putting pressure on domestic prices-

• Lower offers from traders: To attract buying interest in the domestic market, traders offered silico manganese at prices which are lower than those offered by manufacturers. Due to shaky attitudes and a lack of demand in the local market, some producers have also begun reducing their output of manganese alloys.
• Weak global market: The downtrend in global silico manganese prices amid bearish sentiments influenced domestic pricing as well. Due to conflicting opinions, demand for silico manganese in both the local and export markets was constrained. Due to limited buying at high prices, domestic silico manganese prices declined.
• Subdued steel demand: The Indian steel market remained subdued owing to fluctuations in raw material prices and weak demand. As a result, many buyers are in a wait-and-watch mode when it comes to booking bulk volumes. This further put pressure on silico manganese prices.

Outlook

Domestic silico manganese prices may see a minor change in the near-term. However, the market trends and steel production may have an impact on manganese alloy prices.