Silico Manganese prices rise sharply, tracking a recovery in steel prices on a confluence of factors ranging from tight availability, resilience in demand from mills, and bullish expectations for steel consumption in September-October
The Silico Manganese market strengthened, boosted by stronger demand from end-users, some of whom were trying harder to procure before the market witnesses any further uptick. Spot prices in India rose sharply, on healthy interest from end-users and traders after a long period of declining price of Silico Manganese in India. Silico Manganese 60-14 is currently being offered at around Rs. 51,500 – 52,000 /MT (Ex-Raipur) and at Rs. 52,000 – 52,500 /MT (Ex-Durgapur), with few deals being concluded as the market awaits clearer direction. An increase in construction activities, aided by the culmination of the monsoon season in India, has resulted in a stronger sentiment towards the Semi-Finish and Finish Steel market (with prices rising by about Rs. 1000 /MT across all major mandis). However, not all market sources were optimistic about the recent rally in Silico Manganese prices, and expressed caution about the medium-term outlook. “Frankly speaking, it's not so promising, as the rise in prices is very much and very quick, and I do not see any strong fundamentals to support it and that the current pick-up is more speculative than anything else,” remarked a trader source.
In the export market, Indian producers have raised offer levels in line with prices in the domestic market, and expectations of better demand as European buyers are returning to the market. Silico Manganese 60-14 is being offered at $ 810-820 /MT FOB East-coast India, and Silico Manganese 65-16 is being offered at $ 920-930 /MT FOB East-coast India. Deals were heard to be concluded from India for the Far East countries such as Japan and South Korea.
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