- Buyers hold ample inventories after restocking material earlier
- Export demand muted amid competitive offers from other regions
India’s medium-carbon silico manganese prices declined by INR 1,100/t ($12/t) w-o-w to INR 87,800/t ($942/t) ex-works Durgapur on 9 July. Offers this week were heard in the range of INR 87,600-88,900/t ($940-$954/t). A deal for 90 t was concluded at INR 89,000/t ($955/t).
Prices fell amid sluggish buying interest, easing high-grade manganese ore costs, and sufficient inventory levels, which continued to weigh on overall market sentiment.
Factors affecting prices
Weak demand limits fresh buying momentum
Domestic demand remained subdued as several steel mills and end-users had already secured adequate inventories ahead of the monsoon season. Seasonal slowdown in construction activity further impacted steel consumption, prompting buyers to restrict procurement to immediate requirements and exerting downward pressure on prices.
A Raipur-based seller told BigMint, “Sufficient material is available in the market, while buyers are already holding adequate inventories. The export market is also not showing much movement, keeping overall demand and trade activity subdued.”
Declining high-grade ore costs weigh on sentiment
Raw material cost support weakened as imported high-grade manganese ore prices continued to soften amid cautious procurement from smelters. Last week, Australian high-grade ore (Mn 46%) slipped by $0.08/dmtu w-o-w to $5.60/dmtu CNF Haldia/Vizag, while Gabonese ore (Mn 44%) fell by $0.10/dmtu to $5.30/dmtu.
Additionally, MOIL’s July price reduction for Mn 44% and above grades eased raw material cost pressure for producers. However, limited overseas enquiries and slow export bookings continued to outweigh cost benefits, keeping medium-carbon silico manganese market sentiment under pressure.
Sluggish exports intensify price pressure
Export demand remained muted as overseas buyers adopted a cautious stance amid competitive global offers and weak downstream steel market conditions. Limited enquiries from key destinations restricted fresh bookings, while producers focused on maintaining trade volumes rather than attempting price hikes in the current market scenario.
Outlook
Medium-carbon silico manganese prices are expected to remain under pressure in the near term, with a slight drop likely. Adequate inventories, subdued domestic consumption, slow export demand, and softer manganese ore prices may continue to cap any recovery. Market participants are likely to closely track fresh buying activity and raw material price movements before revising offers.
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