With tight supply in Vishakhapatnam and Raipur, coupled with stable demand, there is a strong impetus for Silico Manganese prices to remain firm and perhaps strengthen further this month.
Silico manganese prices in the domestic market regained an upward momentum on better demand. Grade 60-14 is currently being offered at around INR 46,500/MT (ex-Raipur) and INR 47,500/MT (ex-Durgapur). According to sources, Prakash Industries is offering Silico Manganese at INR 45,000/MT (Ex-Champa, Chhattisgarh). Demand in Raipur has presently increased as there is low production in Vizag due to high power tariff. Also, there is some tightness in supply in Raipur market as one of the major producers is not producing Silico manganese in its two furnaces and the company is buying from other producers to fulfill its orders.
A trader source highlighted that the market has been relatively quiet and the lack of trading volume has limited the price movement in this month. “There have been some production shutdowns, but there is definitely no shortage going on here. Steel demand is not strong enough to support further gains in the price level at this time”, the source explained.
Export Market Unchanged
No changes were seen in Silico manganese export prices, although producers continued to push for higher prices with reduction in the duty drawback according to the new FTP. Export prices remained unchanged from last week, grade 60-14 is being offered at around USD 730/MT FoB East Coast India and 65-16 grade at around USD 830/MT, FoB East Coast India. There was continuous demand from Japan and Middle-East Countries, with one producer from Iran showing interest in procuring 5,000 MT of Silico manganese 60-14 from India. The same company also concluded a deal for 2000 MT Silico manganese in the previous month.
“I expect the price of Silico manganese to increase marginally or remain steady in this month, as there is limited but regular demand,” stated a producer from Kolkata.
SteelMint assessed that the current prices are neither too high nor too low, and seems acceptable to both buyers and sellers, amid little change expected in the demand and supply fundamentals.
|
Silico Manganese Prices |
||||||
|
Particular/Delivery |
Size/Grade |
Prices |
Change |
1W |
2W |
1M |
| Ex-Durgapur |
60-14 |
47,500 |
+500 |
47,000 |
47,000 |
47,000 |
| Ex-Hyderabad |
60-14 |
49,000 |
+500 |
48,500 |
48,500 |
48,000 |
| Ex-Raipur |
60-14 |
46,500 |
+500 |
46,000 |
46,000 |
45,250 |
| FOB India |
60-14 |
730 |
0 |
730 |
725 |
730 |
| FOB India |
65-15 |
820 |
0 |
820 |
815 |
800 |
SteelMint Data
Exchange Rate : USD 1 = INR 63.4
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