Silico Manganese prices have found support at current levels, showing very little indication of change, with a lack of buying interest from Steel mills.
Silico Manganese prices are expected to remain firm at INR 65,000/MT (Ex-Raipur) and INR 65,000/MT (Ex-Durgapur). Albeit low demand the prices remains unchanged on account of high cost of production. A Durgapur-based producer remarked, “Demand is very weak in the domestic market,” suggesting greater dependence on overseas sales.
SteelMint assessed that offer prices are unlikely to rise in the near-term as demand remains lackluster. The biggest problem for the Silico Manganese market remained weak steel margins, which constrained demand from steel mills who continued to buy hand-to-mouth.
The overseas markets are expected to stipulate demand as the European buyers are back from holidays. However, the demand from East and South-East Asia have dropped substantially as the Chinese New Year approaches. In the export market, Indian producers have maintained offer levels as demand from foreign buyers has been soft during the Christmas and New Year holidays. Silico Manganese 60-14 is being offered at USD 950 /MT FOB East-coast India, and Silico Manganese 65-16 is being offered at USD 1140 /MT FOB East-coast India.
The rise in production cost coupled with the poor demand for Silico Manganese in the domestic market, has made it difficult for the producers to maintain operating margins.
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