India: Market players optimistic for Silico Manganese in near term

Silico manganese prices move up in domestic market. Offers in export market remain unchanged.

Domestic grade 60/14 is quoted at Rs 53,000-54,000/MT Ex works, i.e. up by Rs 500/MT from the previous week.

Export grade 65/15 is currently quoted at $1100/MT and market players are very optimistic to conclude deals at this rate within a week. A previous deal for SiMn 65/15 was concluded for 500 tonnes at $1080/MT FOB Haldia.

Speaking about the export market a top official from a leading export oriented company in Kolkata said, “Buyers were previously cautious & not confident about their moves. But now the hesitation is not there. We are hopeful to see good buying interest from Europe in the coming months. Buyers in Japan are quiet due to appreciation in Yen against Dollar but activities are there from the MENA region”.

“On one side, when offers are moving up, on the other side, Dollar is depreciating against Rupee.Currently 1 USD stands at 53.87, i.e. down from the level of 54.95 in the beginning of Jan. So, the volatility in currency market is a matter of concern for us”, he added further.

Speaking about a recent tender of SiMn floated by SAIL he said, “SAIL’s tender for SiMn was settled at Rs 56,000 (Including VAT) which is good price.”

According to a analyst who tracks SiMn market in Ukraine, “SiMn 65/17 is quoted at 1500-1620 $/MT DDP. 2 plants in Ukraine are idle since 1st of Dec 2012 due to expensive power and nobody knows when they will resume operations. Only 1 ferro alloys plant is running i.e. Nikopol FP, which has a capacity of 1,20,000 tonnes per month (for Mn alloys) but it is currently operating at 40% capacity of 48, 000 tonnes per month.”