India: Silico manganese prices remain stable amid bearish steel demand

Prices of silico manganese in the domestic market last week remained stable despite a downturn in steel demand. The market has remained quiet mostly due to fluctuations in prices of input material and imported raw materials like manganese ore and coking coal.

Global steel sentiments have been bearish and the result has been fewer enquiries for silico manganese. Moreover, the output of crude steel has decreased globally, which had a cascading impact on demand for manganese alloys.

As per SteelMint assessment, Raipur-based producers offered at around INR 74,200/t exw, nearly stable w-o-w. Prices in Durgapur were at INR 74,000/t exw, nearly stable w-o-w.

Meanwhile, producers’ quotes for grade 60-14 remained at around INR 74,000-75,000/t exw-Raipur. Durgapur-based producers were heard quoting at INR 73,500-74,000/t exw. Traders offered at INR 73,000-74,500/t exw in both Raipur and Durgapur amid limited demand.

Export offers were at $930/t FOB for 60-14 grade, which remained stable w-o-w. Prices for 65-16 grade were assessed at $1,040/t FOB, nearly stable w-o-w. Commodity prices were constant since there was no room for additional price reduction given the low number of enquiries and adverse market trends.

SteelMint recorded export deals of around 1,000 t amid muted demand.

Market highlights

• The domestic and export markets saw mixed sentiments resulting in low demand for silico manganese. Prices remained stable despite some buyers expressing interest and willing to pay higher. In addition, silico manganese manufacturers globally did not support the price reduction of South African manganese ore amid mixed market trends, resulting in prices being stable.
• Last week, domestic steel demand was moderate with limited booking enquiries, and so silico manganese prices remained stable. SteelMint’s IF steel billet index was at INR 46,375/t, down INR 150/t ex-Raipur on 14 March.

Outlook
Demand for manganese alloys has fallen on the back of low demand for steel. India’s supply of manganese alloys has decreased because of limited production. Consequently, silico manganese prices may be impacted in the near term.