The silico manganese market is under more pressure as sellers keep prices unchanged, but buying interest remains thin and low consumption dominates the market sentiment.
Even as silico manganese prices remain unchanged, buyers are asking for discounts, resulting in lackluster trade. As on 15 June’15, 60-14 grade is being offered at around INR 47,000-47,500/MT (ex-Raipur) and INR 48,000/MT (ex-Durgapur). According to sources, Prakash Industries is currently offering the material at INR 46,500/MT (ex-Champa, Chhattisgarh).
A Raipur based producer remarked, “Although we are under pressure to reduce the prices to generate more trade, the increased power tariff is keeping a check on any downward price movement.”
Silico Manganese Export Market Keeps Steady
Silico manganese export prices too remain unchanged, but deals were limited and market activity remained subdued. Export offer for 60-14 grade is around USD 725-730/MT, FoB East Coast India and 65-15 grade is USD 810/MT, FoB East Coast India. In countries, where there is no incentive, grade 60/14 is being offered at USD 740-745/MT FoB East Coast India.
Sell-side market participants in the export market said inquiries were coming from buyers, but deals were few and far between, as buyers’ price expectations could not be matched.
“Real buying appetite underpinned by firm deals was hard to find. We still see a lot of inquires, but there is a reluctance from buyers to book anything,” stated a producer source from Kolkata.
SteelMint learned from market sources that two major South Korean companies that were earlier buying Indian-origin silico manganese 60-14, are now purchasing the material from South Korea itself, leaving Indian producers and exporters with reduced sales in South Korea.
Market sources are of the view that only steel mills that were running on very low silico manganese inventory were seriously looking to buy the material.
Exchange Rate : USD 1 = INR 64
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