India: High Export Realizations keep Domestic Silico Manganese Prices Stable

Silico Manganese price continue to be stasis in the market as buying interest remained subdued

Silico Manganese prices were unchanged due to lack of trade in the domestic market. No significant price movement was noted in the Durgapur Silico Manganese market in the past week. Sources in the market continue to suggest that there was minimal activity in the market and believe that the market condition is unlikely to change in the near future, despite there were still talks of limited supply in Durgapur. Silico Manganese 60-14 is being offered at around INR 54,000 /MT (Ex-Durgapur). A trader source highlighted that the market has been relatively quiet and the lack of trading volume has limited the price movement in this month. “There have been some production shutdowns, but there is definitely no shortage going on here. Steel demand is not strong enough to support further gains in the price level at this time,” the source explained. TATA's branded Silico Manganese 60-15 Silicomag is currently not being offered in the market but Silico Manganese 50-12 is being offered at INR 43,000 /MT FOR West Bengal.

In Raipur, the price of Silico Manganese is unlikely to rise in the near future – despite some reports of buying interest from mills that are low on inventory, as Silico Manganese prices are depressed by the persistent problem of output overcapacity in India, and demand has failed to match the supply. Silico Manganese 60-14 is being offered at around INR 52,500 /MT (Ex-Raipur). Prakash industries are offering Silico Manganese at INR 51,000 /MT (Ex-Champa, Chhattisgarh).

Indian producers have decided to keep the price of Silico Manganese rigid in the export market due to the positive movement of the rupee value. Silico Manganese 60-14 being offered at USD 880-890 /MT FOB East-Coast India, and Silico Manganese 65-16 is being offered at around USD 1000 /MT FOB East-coast India.

On the future outlook, SteelMint assessed that demand was not strong enough to support any price increases. Furthermore, any increase in the market price of bulk alloys has been supply driven and has reached a plateau at this point. Most market participants believe that prices would remain at these levels over the next few weeks.