Indian Silico Manganese Export Increased by 4.4% in May

Although silico manganese exports ticked up marginally in May, prices for the material remained stable.

The total quantity of silico manganese exported from India in Apr’15 was 52,978 which increased in May by 4.4% summing up to 55,300 MT.

SteelMint assessed, in Taiwan, the total export was 6,391 MT in Apr’15, which increased to 8,435 MT in May’15. Similarly, in Italy a total quantity of 7,548 MT was exported in Apr’15 which rose in May’15 to 9,912 MT.

In Vietnam a total quantity of 358 MT was exported in Apr’15 which increased sharply to 1,464 MT in May’15.

On the other hand, in Apr’15 total export to Japan was 9,823 MT which decreased in May’15 to 7,163 MT. Also, in Brazil a total quantity of 1,329 MT was exported in April’15 which receded down to 270 MT in May’15.

Export Market Remains Flat

Indian-origin silico manganese export prices remained flat amid slow spot trading in the market.

Export offers remained unchanged W-o-W, with grade 60-14 being offered at around USD 730/MT FoB East Coast India and 65-15 grade at around USD 810/MT, FoB East Coast India.

Indian ferro alloy exporters used to get an incentive of 4% under Focus Product Scheme and a duty drawback of 1.4% , which has now been reduced to 2% under MEIS and 1.4% Duty Draw Back, w.e.f 1 Apr, 2015. In countries, where there is no incentive, grade 60/14 is being offered at USD 745/MT FoB East Coast India.

Silico Manganese Prices Decline in Domestic Market

Silico manganese prices came down this week, with reports of low demand as well as negative sentiment among market participants.

In the domestic market, there is recent decline in prices on the backdrop of thin trading. Grade 60-14 is currently being offered at around INR 47,500/MT (ex-Raipur) and INR 48,000/MT (ex-Durgapur). According to sources, Prakash Industries is currently offering silico manganese at INR 46,500/MT (ex-Champa). Last week producers had raised their offers on higher power tariff, but had to again decrease their offers due to poor demand.

A producer source from Raipur remarked, “There is dearth of demand for silico manganese and the market will not accept any price increase.”

Indian producers remained wary as they did not think the steel market would support stronger prices. “Everyone is being a bit more cautious now that the uptick we saw earlier this week proved unable to sustain,” stated the producer from Raipur.

SteelMint assessed that weak demand has lead to marginal softening of prices, and further downfall in prices cannot be ruled out. Indian producers for silico manganese are quite hesitant in increasing offer prices looking at the dull market condition.

Source: Provisional Customs data

Exchange Rate : USD 1 = INR 63.9