Malaysian manganese alloys producers plan to export their output to major steelmakers in India, Japan and Taiwan.
The upcoming Malaysion silico manganese capacity is a major point of worry for the Indian producers, as it will then be difficult for them to remain price-competitive with their Malaysian counterparts, and chances are they will lose market share in what have been their traditional markets so far.
There are three companies that are involved in producing ferro alloys in Malaysia at the Samalaju Industrial Park – Sakura Ferro Alloys, OM Materials and Pertama Ferro Alloys. The main advantage for the Malaysian companies is very low power costs.
Domestic Market
Prices of silico manganese were stable as sources said slow demand was forcing lower deals. Demand of silico manganese remains low in the domestic market due to weaker demand from semi-finished steel industry. Currently grade 60/14 is being traded at INR 46,000/MT (Ex-Raipur) and INR 47,000/MT (Ex-Durgapur).
A Raipur based producer stated, “There is no revival of buying activities yet and we could be witnessing many plant shutdowns in the near future.”
Export Market
Indian silico manganese producers are receiving little buying interest from overseas buyers.Grade 60/14 is currently being offered at USD 725-730/MT FoB East Coast India and 65/15 is being offered at USD 805/MT FoB East Coast India. Overseas demand for silico manganese is also really low and despite the low offer levels, prices were still not welcomed by buy-side participants.
SteelMint assessed that the silico manganese market is to remain sluggish till month-end, as transactions were at low levels due to slow demand. However, after the rainy season prices could rise as better demand is expected from the domestic market.
Exchange Rate : USD 1 = INR 63.8
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