Export demand gives a fillip to silico manganese

* Enquiries have picked up for export

* Short supply from other producing countries like Ukraine
& Norway to boost demand from India

* Prices likely to stay firm in near term

Domestic grade 60/14 is quoted at Rs 53,000-53,500/MT Ex
works, i.e. up by Rs 500-1000/MT from the previous week.

“Export demand has supported the improvement in market.  Demand for SiMn is more than FeMn. Rising
prices and improved demand for SiMn is luring manufacturers to switch to production
of SiMn”, said a top official from a major manufacturing company in Raipur.

A recent deal for Silico manganese export grade 65/15 was concluded
at $1080/MT FOB Haldia.

Speaking about the export market, a top official from a
leading export company in Kolkata said, “Europeans are back to the market.
Supply from other producing countries like Ukraine & Norway are low. Power
shortage in Ukraine has lead to shut down of some ferro alloys plants. So,
India has a good chance to fill the demand- supply gap.”

“Producers in India are not carrying stocks too. So, we
expect the uptrend to continue for the next 2-3 months. Export Prices have
already moved up by $20-40/MT and we are quite optimistic for further price rise
in Q1.” he added further.

However, amongst all the optimism, industry experts also see
a reason for turnaround in the market in long run. “Currently most of the manufacturers are
running at lower capacities and if the rising prices in SiMn starts luring manufacturers
to increase production of SiMn or switch capacities to SiMn from FeMn which is normally
the case, then there could be excess supply leading to a turnaround in the market
on the long run.”, said an industry expert.