Prices of silico manganese decreased slightly last week due to weak demand. However, increased input costs and imports of raw materials restricted the market’s stability. Due to high production costs, producers were not as active last week with offers. Consequently, prices of silico manganese fell slightly.
As per SteelMint’s assessment, Raipur-based producers offered at around INR 78,000/t exw, down 3% w-o-w, while in Durgapur prices were at INR 77,600/t exw, a decrease of 3% w-o-w.
Meanwhile, quotes by producers for grade 60-14 remained at INR 78,500-80,000/t exw-Raipur. On the other hand, Durgapur producers were heard quoting at around INR 77,500-78,500/t exw. However, offers by traders hovered at around INR 76,500-78,500/t exw in both Raipur and Durgapur amid softening demand.
During the week, SteelMint recorded trade volumes of around 3,000 tonnes (t) of manganese alloys in the domestic market.
Indian exporters offered at around $980/t FoB for 60-14 grade, down 2% from last week, while prices for the 65-16 grade were assessed at $1,080/t FoB, a similar 2% drop w-o-w. Prices fell amid limited export inquiries and lack of demand since last week.
SteelMint recorded trade volumes of around 800 t in the export market.
Factors limiting silico manganese prices
- Bearish global sentiments: Global silico manganese prices were affected by bearish sentiments, which dampened liquidity, thus also affecting domestic prices. In both 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.
- Overseas buyers seek lower prices: Lack of buying interest and uncertain market conditions led to limited international enquiries. In comparison with offers, seaborne buyers sought material at much lower prices. But it was difficult for smelters to sell material at such low prices, which led to low export transactions. Consequently, prices for silico manganese dropped slightly.
- Moderate domestic steel demand: Moderate demand for domestic steel last week was accompanied by limited requests for bulk orders as well as limited purchases at higher prices, which kept silico manganese prices down. SteelMint’s daily steel billet index was assessed at INR 47,550/tonne (t) (down by INR 400/t) exw-Raipur on 24 January, 2023.
Outlook
Silico manganese prices are expected to fluctuate in the short term. Domestic steel demand is fluctuating somewhat on a weekly basis. However, international inquiries have increased in recent days, and producers are expecting a favourable outcome.
Leave a Reply