Sell-side players kept silico manganese offer levels unchanged, but have met with limited buying interest.
Domestic demand for silico manganese remains low with prices remaining unchanged this week. Grade 60-14 is being offered at INR 45,500/MT (ex-Raipur) and INR 45,000/MT (ex-Durgapur). Prakash Industries is offering silico manganese at INR 44,500 /MT (ex-Champa, Chhattisgarh). Indian producers reported buyers were reluctant despite the seemingly low prices for silico manganese. SteelMint assessed that the infrastructure projects in India, which are expected to boost demand for silico manganese, are still in planning stages; and most Indian producers were running plants at around 40% of capacity.
Export Market
Silico manganese export market is timid with no keen buying interest from overseas players. Currently, grade 60-14 is being offered at USD 670-680 /MT FOB East-coast India and 65-16 is being offered at USD 740-750/MT FOB East-coast India. Looking at the low demand from overseas buyers, Indian producers had cut their offers, but demand for the material has not picked up as Indian suppliers of silico manganese are not price competitive at the moment.
“We are losing our Middle East market to Ukrainian sellers, so we need to cut prices further. The European market is not good, so Ukrainian material is penetrating the Middle East”, remarked a producer from Kolkata.
Market sentiment in India remained unoptimistic, with most seeing little chance of any upswing in prices. Whereas, some agreed that there could be a further dip in prices in the near-term, however, nobody expected a plunge, as many felt the market was already close to the bottom.
Exchange Rate: USD 1 = INR 66
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