Indian Silico Manganese market outlook still weak

Demand-Supply imbalance still hurting the Indian Silico Manganese market as sellers try to sell aggressively.

Indian producers of Silico Manganese reported of poor overseas demand and seemed gloomy over the current market situation. SteelMint assessed that the price of Silico Manganese in India is unlikely to rise in the near future – despite improvement in demand and prices of semi-finish steel across major regions in India in the past week. This is because the demand-supply imbalance persists in the Indian Silico Manganese market, which is currently hampered by very poor overseas demand. A Silico Manganese trader based in Raipur echoed the same sentiment, “Silico Manganese prices are depressed by the persistent problem of output overcapacity in India, and demand has failed to match the supply.”

SteelMint learned that the manufacturers of Manganese Alloys are weighed down by deteriorating external demand and destocking pressures. Silico Manganese 60-14 deals are being concluded in the range of INR 38,500 – 39,000 /MT (Ex-Raipur) and at around INR 39,500 /MT (Ex-Durgapur). According to sources, Prakash Industries is offering Silico Manganese at INR 38,000 /MT (Ex-Champa, Chhattisgarh). Market sentiment in India remained unoptimistic, with most seeing little chance of any upswing in prices in the near-term.

Overseas demand for Indian origin Silico Manganese is very low, with little or no deals concluded in the past week. The export market reported of no further drop in prices but remained flat. Silico Manganese 60-14 is being offered at USD 620 /MT FOB East-coast India, and Silico Manganese 65-16 is being offered at USD 680 /MT FOB East-coast India.

Manganese Alloy producers are waiting for MOIL to declare its offer price for the next quarter (January-March). Most market participants believe MOIL will cut prices for Manganese Ore, as Manganese Alloy prices have come down sharply in the months gone by. In the event of MOIL reducing its prices for Manganese Ore, it could provide some relief to the Silico Manganese producers.