- Weak steel demand, muted exports dampen market
- Near-term downside likely for domestic silico manganese
Domestic silico manganese prices continued to decline, pressured by weak trade activity and subdued downstream demand. The recent price cuts announced by MOIL for May deliveries have lowered raw material costs, prompting buyers to delay procurement in anticipation of further corrections. Coupled with poor steel sector performance, purchasing has remained largely need-based.
Additionally, muted export demand has led to material accumulation in the domestic market, creating a pronounced supply overhang. This widening demand-supply imbalance, reinforced by softer ore prices, is exerting sustained downward pressure on silico manganese prices.
As per BigMint’s assessment, prices declined sharply across key markets w-o-w, with Raipur down by INR 2,800/t to INR 77,000/t ex-works ($816/t) and Vizag falling by INR 1,600/t to INR 76,800/t ($814/t). Durgapur and Raigarh recorded steeper corrections, both dropping by INR 2,500/t to INR 76,700/t ($813/t) and INR 76,200/t ($808/t), respectively, reflecting broad-based weakness in market sentiment.
Confirmed deals (as per BigMint)
Market overview
Sluggish trade, low bids weigh on Raipur billet prices: BigMint’s Raipur billet index declined by INR 500/t w-o-w to INR 41,600/t exw on 6 May, as weak demand and subdued sentiment continued to pressure the market. Trade activity remained sluggish with limited enquiries and lower bids, prompting sellers to soften both offers and working prices. Despite these adjustments, procurement stayed largely need-based, with buyers remaining cautious amid weak finished steel demand and slow offtake.
MOIL cuts manganese ore prices by 4% for May: State-owned MOIL Limited has reduced manganese ore prices by 4% across all key grades, effective 1 May, including ferro grades above and below 44% Mn, as well as SMGR segment categories such as Mn 30%, Mn 25%, fines, and chemical grades. The correction follows a steep increase of up to 17.5% m-o-m announced for April deliveries—the sharpest hike in the past two years indicating a shift in pricing strategy amid weakening downstream market conditions.
Outlook
Domestic silico manganese prices are expected to remain under pressure, with further downside of around INR 1,000-2,500/t likely in the near term. Weak steel demand, muted exports, and ample supply continue to weigh on sentiment.
Leave a Reply