The domestic market is currently over-supplied forcing the prices down as demand is weak for Indian Silico Manganese. Silico Manganese prices have fallen significantly in last few months, with offers in India having witnessed a sharp fall of around INR 9,000/MT in last 2 months.
Producer sources revealed that prices have almost bottomed out and there is very little scope of further correction from these levels, as they are still using the Ore that was procured at very high prices.
“We feel that prices have bottomed out. Current market prices are so low that it is not able to cover the cost of production.”
The current offers for the Indian Silico Manganese grade 60-14 are INR 55,000/MT (Ex-Durgapur) and INR 54,000/MT (Ex-Raipur).
The price for Silico Manganese from Durgapur remained stable whereas a fall of INR 500-1,000/MT has been registered in Raipur offers from last week. The producers of Silico Manganese in Durgapur are reluctant regarding lowering their offers as they purchased imported ores at relatively high prices whereas Raipur producers had to back-down amid destocking pressure.
Moreover, MOIL’s decision on price cut by 15-25% has also supported the lowering of Indian Silico Manganese offers.
The overseas market has also been observing a similar bearish sentiment as export prices slipped down further. Currently, the export offer prices are at USD 800 /MT FOB East-coast India for Silico Manganese grade 60-14 and USD 920 /MT FOB East-coast India for Silico Manganese grade 65-16. On the future outlook, SteelMint assessed that demand was not strong enough to support any price increases and distressed deals can’t be ruled out either.
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