Silico manganese market remained weak, as ongoing pessimism about the steel market outlook pushed buyers away from procurement.
On the backdrop of weak demand, silico manganese producers have kept prices unchanged. Although sources report that there is no demand on lower prices even. In Raipur currently silico manganese is being offered at INR 43,000/MT, unchanged from last week. Many producers in Raipur have stopped production owing to low demand. Even at such low prices there are no buyers. Similarly in Durgapur prices are unchanged at INR 44,000/MT. There is no demand yet as the market has just reopened after the Durga Puja holidays in West Bengal. Market sources said buying interest for semi finish steel remained muted which has impacted the ferro alloy market.
“Steel mills are just procuring at the bare minimum based on their production plans. We might soon see that many plants are being shutdown because demand is so very low,” stated a producer from Raipur.
Silico Manganese Export Offers Weak on Lackluster Demand
Offers for silico manganese remained weak, under pressure from scant buying and trades continued to be thin on lackluster demand.
The export market has seen a further downturn this week on limited buying interest. Export offers for grade 60-14 is around USD 680/MT FOB East-coast India and 65-15 is being offered in the range of USD 720-730/MT FOB East-coast India. Market sources report of inquires from international buyers but not converted into deals.
Looking at the dull market condition a producer source from Kolkata stated, “Export market has shown no signs of recovery since many months. Things are not looking good for the rest of the year.”
Market sources said that sellers were lowering their prices to spur interest from buyers who remained cautious about procurement while the steel market has yet to exhibit any signs of recovery. The weak steel market is sapping silico manganese demand.
Silico Manganese Prices
|
Particular/Delivery
|
Size/Grade | Prices | Change | 1W | 2W | 1M |
| Ex-Durgapur | 60-14 | 44,000 | 0 | 44,000 | 44,000 | 45,000 |
| Ex-Hyderabad | 60-14 | 46,000 | 0 | 46,000 | 46,000 | 47,000 |
| Ex-Raipur | 60-14 | 43,000 | 0 | 43,000 | 43,500 | 45,500 |
| FOB India | 60-14 | 680 | 0 | 680 | 680 | 675 |
| FOB India | 65-15 | 725 | – 10 | 735 | 735 | 735 |
Prices in INR/MT
Source: SteelMint Research
Exchange Rate : USD 1 = INR 64.9
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