- Fresh supply enters market, buyers eye bargains
- Steel mills limit purchases amid ample inventories
Domestic silico manganese prices edged lower w-o-w due to subdued demand from steel mills and a lack of fresh inquiries. The primary driver of this price drop was a bulk domestic deal concluded at lower rates, which exerted downward pressure on overall market prices.
According to BigMint’s assessment on 22 July, domestic prices of 60-14 grade silico manganese were recorded as follows: Ex-work prices in Raipur were at INR 72,900/tonne (t) ($847/t), while tags in Durgapur remained unchanged around INR 72,400/t. In Vizag, prices stood steady w-o-w at INR 72,500/t ($839/t).
Meanwhile, the premium 60-15 grade was also down slightly w-o-w, trading in the range of INR 73,800-74,500/t ($852-861/t).
The domestic silico manganese market saw a notable decline in activity during 16-22 July. Approximately 2,000 t of 60-14 grade silico manganese were transacted in Raipur, marking a sharp drop from the 5,100 t traded in the previous week. The downward pressure was further intensified by a bulk deal concluded at lower rates.
Confirmed deals (as per BigMint)
Market overview
Competitive pricing, rising output soften silico manganese rates: Competitive pricing from Raigarh at INR 72,000-72,300/t, along with recent low-priced deals at around INR 72,400/t exw-Raipur, has set a benchmark for the domestic market. Key buyers from Durgapur informed BigMint that market supply increased, as several ferro silicon manufacturers in the eastern belt have shifted to silico manganese production. This rising supply put downward pressure on prices, with a slight fall expected in the near term amid ongoing bids below listed rates.
Steel mills limit purchases, smelters forced to compete: The bargaining power shifted in favour of buyers, as steel mills, holding ample inventories, were cautious in their procurement. This forced smelters to reduce their prices to remain competitive in the domestic market.
Smelters also faced pricing pressure as buyers pushed for lower rates, citing recent confirmed deals at reduced prices. With buyers actively negotiating and holding firm on lower bids, the market witnessed a downward pull in silico manganese prices.
Outlook
Domestic silico manganese prices are expected to remain steady in the near term amid rising supply. However, a recovery in steel market dynamics will be a key factor influencing future price movements.
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