India: Silico Manganese Export Offers Slip on Dearth of Deals

Silico manganese export prices slipped by almost USD 40/MT FOB India this week, amid a persistent absence of deals from international buyers.

Silico manganese 60-14 is being offered at around USD 700/MT FOB East-coast India, and silico manganese 65-16 is being offered at USD 780/MT FOB East-coast India.

In view of the low demand from overseas buyers and rising selling pressure due to a lacklustre domestic market, Indian producers have decided to cut their offers. Although, demand for the material has not picked yet. “We thought prices are already low, but end-users keep appearing to do lower-than-expected deals… there’s really no indication of when prices will bounce back now,” stated a producer from Kolkata.

SteelMint assessed that if demand for Indian silico manganese does not pick up from overseas markets, it would put pressure on the producers to offer aggressively in the domestic market, and prices could tumble down further.

Indian Silico Manganese Exports in Apr’16 and May’16(til 19th May’16)

Qty in MT

Domestic Silico Manganese Prices Slide Further

Silico manganese prices dipped further, as buying indications continued to fall in the market.

Prices of silico manganese softened marginally, as buying interest waned on poor demand from steel mills. Market sources said the weak outlook for steel had hit confidence levels, and many end-users were retreating from the market.

SteelMint assessed weekly 60/14 silico manganese prices at INR 47,000/MT (Ex-Durgapur) and INR 47,500/MT (Ex-Raipur).

A seller source from Raipur said, “There was no reason for prices to increase as market fundamentals had not changed and there were very low inquiries from end-users.”

Market sources reported of bearish sentiment prevailing over the market and so prices are expected to remain checked in the near future.