Silico manganese prices in India declined on lower demand. As a result of high production costs, producers were not very active with offers last week, although they were not ready to sell at low prices. In contrast, traders were more interested in buying at lower prices. The domestic and overseas markets saw limited inquiries, with mixed sentiments prevailing.
As per SteelMint’s assessment, Raipur-based producers offered at around INR 80,000/t exw, down 3% w-o-w, while in Durgapur prices were at INR 79,900/t exw, a decrease of 3% w-o-w.
Meanwhile, quotes by producers for grade 60-14 remained at INR 80,500-81,500/t exw-Raipur. On the other hand, Durgapur producers were heard quoting around INR 80,000/t exw. However, offers by traders were at around INR 79,000-80,500/t exw in both Raipur and Durgapur amid softening demand.
During the week, SteelMint recorded trade volumes of around 7,500 tonnes (t) of manganese alloys in the domestic market.
Indian exporters offered at around $995/t FOB for 60-14 grade, down 2% from last week, while prices for 65-16 grade were assessed at $1,100/t FOB, a similar 2% drop w-o-w. Prices fell amid limited export inquiries and lack demand since last week. SteelMint recorded trade volumes of around 1,400 t in the export market.
Factors weighing on silico manganese prices
- Selling pressure: Despite sales pressure from manufacturers, consumers sought to lower costs. Silico manganese prices globally have been impacted on high inflation and decreased liquidity, which has also impacted domestic pricing. Demand was muted both in the local and export markets. The lack of buyers interested in purchasing at high prices has naturally put pressure on prices.
- Moderate Indian domestic steel prices: Steel prices in the domestic market have improved slightly and mainly need-based inquiries were heard in the domestic market. SteelMint’s daily steel billet index was assessed at INR 48,375/tonne (t) (+INR 867 w-o-w) exw-Raipur on 17 January, 2023. However, bulk inquires are still absent.
Outlook
The manganese ore market is robust at present. If export inquiries in Europe start appearing, it is likely that prices may rise. On the global level, silico manganese production has been halted due to electricity shortage in Zambia. If global manganese alloys supplies and manufacturing are impacted for some time, Indian exporters may seize the opportunity of increasing their shipments.
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