The silico manganese market weakened further as unstable steel fundamentals put a damper on buying interest.
SteelMint assessed its weekly silico manganese grade 60/14 price at INR 46,000 (Ex-Durgapur) and INR 46,500/MT (Ex-Raipur), both prices down by INR 1,000/MT from last week.
Buying interest seemed to have dissipated, with most buyers in a wait-and see mode in anticipation of further price falls. Demand from steel mills has diminished significantly for which silico manganese buying is low, and hence prices are weak. “The whole demand situation for Silico Manganese is so bad now and it’s really down to the drab performance of the steel market,” stated a producer from Raipur.
Market sources predict a further downward correction in prices, in the coming weeks.
Subdued Silico Manganese Export Market Keeps Prices Flat
The silico manganese export market is relatively quiet as international buyers have not been interested in buying from India and are inquiring for material at lower levels.
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.
Indian producers reported that buyers are expecting much lower prices. Despite prices being at a low level end-users were unwilling to buy. Looking at the situation a producer from Kolkata says, “It has been a very quiet few days. We cannot identify a clear direction for prices. Buying appetite has subsided from domestic as well as overseas markets.”
Silico manganese prices are expected to remain under pressure, and the possibility of seeing a rebound in prices in the next three to four weeks remains non-existent.
Exchange Rate: USD 1 = INR 67.2
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