The improvement in steel market across the globe has buoyed the confidence in fundamentals and pushed up the manganese alloy offers on a spate of spot deals.
Manganese alloy producers seemed bullish with strengthening steel market as they have observed an increase in inquiries, mostly from overseas.
“Amplifying demand for Ferro manganese has supported hike in its prices and helped it to sustain,” mentioned a Durgapur based producer source justifying the reason to raise his offers. Currently, Ferro Manganese 70% grade is offered at around INR 72,500/MT for both (Ex-Durgapur) and (Ex-Raipur). He further mentioned that most of the producers are holding low stock amid improved demand.
However, domestic prices for Silico manganese remains stable with an expectation to remain firm. “Recent supply curtailment of Silico Manganese 60-14 grade has ensured its current prices to sustain,” said a source referring to an increase in production of 65-16 grade on high overseas demand.
SteelMint assessed Silico Manganese prices at INR 65,000/MT for both (Ex-Durgapur) and (Ex-Raipur).
Most of the manganese alloy producers are focusing on export due to good realization value in overseas market.
The Middle-East and Europe are the primary market for Indian manganese alloys as they are accepting higher offers on basis of their increasing demand. Export offers for Silico Manganese increased to USD 1050/MT for 60-14 grade and USD 1160/MT for 65-16 grade. While the same for Ferro manganese is assessed at USD 1120/MT for 70% grade and 1190/MT 75% grade.
Sell-side players are observed to be optimistic regarding the improving demand for both the commodities and are hoping to test the market by raising their offers further, in view of the stronger global steel markets.
Leave a Reply