Silico manganese market tanked down, as demand continued to collapse.
Prices of silico manganese softened this week on low demand and oversupply of material that prompted sellers to pull down offers. Steel sales have also slowed down; hence buyers were retreating from the market. The Silico Manganese market has gone back to being a buyer’s market with supply far out-stripping demand.
SteelMint assessed weekly 60/14 silico manganese prices at INR 50,500-51,000/MT (Ex-Durgapur) and INR 51,000-51,500/MT (Ex-Raipur).
A Raipur based producer stated, “Growing availability of material has dented demand. There is no real demand; the earlier price uptick was a short term upward frenzy.”
Market sources alluded that this month prices should remain at this level.
Indian Silico Manganese Export Prices Stable
In the export market, overseas demand for Silico Manganese is also very low. This could be because price ideas of buyers and sellers are still not matching. In March’16 India exported around 36,000 MT of Silico Manganese. However, in April’16 (1-17) India has just exported around 12,500 MT. Bangladesh has been the major importer of Indian Silico Manganese, having imported 2,685 MT of Silico Manganese in April’16 (1-17). Other major importers of Indian Silico Manganese are Japan and Pakistan, having imported 2,400 MT and 1,400 MT in this month respectively. Indian producers have maintained offer levels although demand from foreign buyers has been very soft. Silico Manganese 60-14 is being offered at USD 810 /MT FOB East-coast India, and Silico Manganese 65-16 is being offered at USD 860 /MT FOB East-coast India. SteelMint assessed that offer levels need to fall if they are to be welcomed by buy-side participants.
Exchange Rate: USD 1 = INR 66.6
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