Indian silico manganese prices did not change last week amid chaotic demand trends in the domestic market. Rising steel prices in the domestic market led to expectations that silico manganese prices too would increase. But that did not happen.
Meanwhile, SteelMint recorded trade volumes of around 6,500 tonnes (t) amid fluctuating demand.
According to SteelMint’s assessment, Raipur-based producers offered at around INR 105,000/t exw while prices in Durgapur were at INR 104,000/t exw.
Exporters are offering at around $1,400/t for 60-14 grade, down by $90/t from last week, while prices for the 65-16 grade are assessed at $1,565/t FOB India, down $25/t owing to weak inquiries from overseas.
Why is the market volatile?
- Supply exceeding demand: In the domestic market, supply of silico manganese is exceeding demand. This is leading to inventory pile-up on to the seller’s side while buyers are exhibiting a lower appetite for the material.
- Average performance of raw material prices: Raw material (manganese alloys) prices remained range-bound in the domestic market, which had a negative impact on silico manganese prices. This led to uncetainty among market participants whether to buy or sell in the current scenario.
- Indian steel market volatile: The Indian steel market showed improvement in inquiries. A few deals happened at higher prices last week.
Chinese market overview
China’s silico manganese (60-14) prices were at RMB 7,550/t ($1,180/t) exw-Inner Mongolia, while the 65-17 grade was offered at RMB 8,395/t ($1,319/t) exw-Inner Mongolia. In silico manganese, quotes increased slightly, but deals could not be confirmed at these elevated offers. Moreover, demand has been subdued too, because of the Covid surge.
Outlook
The current demand scenario is subdued. However, this may rebound once prices stabilise, as it is not easy to trade at high prices. Prices are expected to become stable in the short term because of lack of inquiries.
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