Indian manganese alloys producers have raised their offers for silico manganese on dearer raw material but are met with poor demand.
The price of Silico Manganese in India is unlikely to rise in the near future, as steel fundamentals are not showing any signs of recovery. Most Silico Manganese producers have opted to cut production levels in sight of poor demand from steel mills.
The mainstream domestic offer price of Silico manganese 60/14 is around INR 64,500/MT (Ex-Durgapur) and INR 65,000/MT (Ex-Raipur).
The demand for Silico Manganese plummeted hugely post demonetization.
In the week gone by, Manganese Ore India (MOIL), had increased prices of various grades by upto 30% for Dec’16. MOIL generally fixes its prices on quarterly basis, but soaring sea-borne manganese ore prices, has prompted the miner to increase its offer on a monthly basis.
Furthermore, the Government of India (GoI), with effect from 25 Nov’16, has imposed Anti-Dumping Duty on imports of Met Coke from China and Australia, which will further increase their Cost of Production.
The rise in production cost coupled with the very poor demand for Silico Manganese in the domestic market, has made it almost unviable for Silico Manganese producers to operate at present.
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