Silico manganese prices slipped this week as buyers seemed disinterested in buying and the sinking steel market continued to dampen demand.
The silico manganese market saw another round of price decline on limited demand and surplus material. A producer from Raipur stated, “Price fall has been severe this week. This led into difficult trading conditions, alongside both falling production levels and demand.”
In Raipur prices are almost down by INR 1,500/MT this week. Currently grade 60/14 is being offered at INR 41,500/MT (Ex-Raipur). Similarly, in Durgapur prices are down by INR 1,000-1,500/MT. Grade 60/14 is being offered at around INR 42,500-43,000/MT (Ex-Durgapur). Sources said mills were considering stopping production as demand and steel prices continue to be adversely affected. Ferro alloy producers were coming under pressure, but with MOIL reducing ore prices it has not really provided much relief to the producers, who have decided to pass it to the consumers by cutting down offers further.
Export Market Sentiment Still Weak on Supply Overhang
The silico manganese export prices dipped just slightly amid moderate demand, although export offers are unlikely to correct sharply, on the back of reduction on export benefit announced under the New Foreign Trade Policy.
Export offers for grade 60-14 is around USD 670/MT FOB East-coast India and 65-15 is being offered at around USD 720/MT FOB East-coast India. Market sources said that buy-side expectations were much lower. SteelMint learned from market sources that for grade 60/15 buyers have shown willingness to purchase at USD 710/MT FOB East-coast India.
There is immense destocking pressure on producers as there is no recovery in demand in the export market. “I do not feel there is any demand for silico manganese in the export market. We have lowered our offers, but no one gives a firm deal,” remarked a producer from Kolkata.
On the future outlook, market sources cited that prices will either remain at the same level or go down further. With the Diwali holidays approaching it is expected that the market will be under more pressure as sellers can negotiate at lower prices.
| Silico Manganese Prices | ||||||
|
Particular/Delivery
|
Size/Grade | Prices | Change | 1W | 2W | 1M |
| Ex-Durgapur | 60-14 | 42,750 | – 1,250 | 44,000 | 44,000 | 45,000 |
| Ex-Hyderabad | 60-14 | 45,000 | – 1,000 | 46,000 | 46,000 | 47,000 |
| Ex-Raipur | 60-14 | 41,500 | – 1,500 | 43,000 | 43,000 | 45,000 |
| FOB India | 60-14 | 670 | – 10 | 680 | 680 | 680 |
| FOB India | 65-15 | 720 | – 5 | 725 | 735 | 740 |
Prices in INR/MT
Source: SteelMint Research
Exchange Rate: USD 1 = INR 65.6
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