EU Investigation on Silico Manganese Complete

Anti-Dumping investigation is over and the provisional recommendation is expected by mid-August.

The European Union had initiated an anti-dumping proceeding concerning import of silico manganese originating in India. The commission received a complaint in Nov’14. The manufacturers in EU complained that silico manganese from India is being dumped and thereby causing material injury to the union industry. The EC had invited companies and other stakeholders from the Indian side to participate in the investigations.

A provisional recommendation for silico manganese anti-dumping investigations is expected by mid-August.

Europe accounts for about 25% of India’s silico manganese export. Hence, an anti-dumping duty could have a huge impact on the fortune of the silico manganese industry in India.

The competitiveness of Indian ferro alloys in international markets is already eroded by the reduction in export benefits to the sector under the Merchandise Exports from India Scheme (MEIS), announced under Foreign Trade Policy (FTP), 2015-2020. The new policy has effectively reduced export incentive on ferro alloys by 2-4%, based on the category of the country.

Domestic Silico Manganese Prices Remain Unchanged

Silico manganese market remains flat with no change in prices. Currently prices of silico manganese are hovering around INR 46,500/MT (Ex-Raipur) and INR 47,500/MT (Ex-Durgapur). According to sources, Prakash Industries is currently offering at INR 45,000/MT (Ex-Champa, Chhattisgarh). Market participants reported most Silico manganese producers have cut production levels in sight of poor demand from steel mills.

“There is bearish market sentiment, which has mainly to do with poor demand from steel mills and uncertainties about the future that has resulted in muted demand for Silico manganese,” remarked a producer from Raipur.

Export Market

In the export market, prices for silico manganese remain firm as demand improves from South-East Asian and Middle East countries. Silico manganese 60-14 is being offered at USD 725-730/MT FoB East Coast India and 65-16 is being offered at USD 820/MT FoB East Coast India.

As an outlook, SteelMint assessed that demand was not strong enough to support any price increase. Most market participants believe that prices would remain at these levels over the next few weeks.

Exchange Rate : USD 1 = INR 63.8