Silico manganese prices in India inched down as domestic and export demand for manganese alloys weakened. Additionally, manganese ore prices have been falling for quite some time and buyers are keen to take advantage of lower prices.
Average steel demand weighs on silico manganese prices. Some domestic deals were concluded at lower prices, which have had a negative impact on silico manganese prices.
As per SteelMint’s assessment, Raipur-based producers offered at around INR 76,500/t exw, down 1% w-o-w, while in Durgapur prices were at INR 75,400/t exw, a decrease of 1% w-o-w.
Meanwhile, quotes by producers for grade 60-14 remained at INR 76,500-77,000/t exw-Raipur. On the other hand, Durgapur producers were heard quoting at INR 76,000-77,000/t exw. However, offers by traders hovered at around INR 75,500-76,500/t exw in both Raipur and Durgapur amid softening demand.
During the week, SteelMint recorded trade volumes of around 2,500 tonnes (t) of manganese alloys in the domestic market.
Indian exporters offered at around $960/t FoB for 60-14 grade, down 2% from last week, while prices for the 65-16 grade were assessed at $1,060/t FOB, down 2% w-o-w. Prices fell amid limited export enquiries and lack of demand.
SteelMint recorded trade volumes of around 1,000 t in the export market.
Factors weighing on prices
- Global sentiments bearish: Bearish attitudes weigh on prices of silico manganese globally, with decreased liquidity and consequently reduced local pricing. Demand for silico manganese in both the local and export markets remained muted.
- Low prices sought by overseas buyers: Lack of buying interest and uncertain market conditions resulted in limited international enquiries. Compared to 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 inched down.
- Moderate domestic steel demand: Moderate domestic demand for steel last week was accompanied by limited requests for bulk orders as well as limited purchases at higher prices, which kept silico manganese prices subdued. SteelMint’s daily steel billet index was assessed at INR 46,550/t (down by INR 367/t) exw-Raipur on 21 February.
Outlook
Silico manganese prices are likely to remain firm. Manufacturers are anticipating market sentiments to remain positive due to a surge in overseas enquiries.
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