- Weak steel demand limits market recovery
- Discounted transactions keep market under pressure
Indian medium-carbon silico manganese (Mn 53%, Si 20%, C maximum 0.5%) prices dropped by INR 2,100/t ($22/t) w-o-w to INR 87,500/t ($909/t) exw-Durgapur on 21 May. Prices continued to decline this week as buyers secured material at lower rates amid weak alloy steel demand, forcing suppliers to reduce offers to sustain transaction volumes and market participation Offers were at INR 86,800-88,000/t ($902-914/t), with 3,120 t sold in the range of INR 87,000-88,000/t ($904-$914/t).
Alloy steel weakness pressures prices lower
Continuous weakness in alloy steel prices across India forced medium-carbon silico manganese suppliers to reduce offers to secure transactions. Buyers remained cautious amid slow downstream demand, resulting in procurements being concluded only at discounted levels during the week.
Imported manganese ore sentiment weakens: Downward pressure continued in India’s imported manganese ore market this week as buying interest remained subdued, mirroring the persistent decline in manganese alloy prices. Weak downstream alloy demand and shrinking smelter margins continued restricting fresh ore bookings, with most buyers limiting purchases to immediate production requirements. The cautious procurement approach kept overall market sentiment bearish, increasing pressure on imported ore offers in the near term.
Australian high-grade manganese ore (Mn 46%) prices declined by $0.14/dmtu w-o-w to $6.31/dmtu CNF Haldia/Vizag, while Gabonese high-grade ore (Mn 44%) prices fell by $0.10/dmtu w-o-w to $5.90/dmtu CNF Haldia/Vizag.
Outlook
We expect the market is expected to remain weak in the near term as the continuing depreciation of the rupee against the dollar is likely to increase imported raw material costs significantly. However, subdued alloy steel demand, cautious buying sentiment, and persistent pressure from buyers are expected to limit any significant price recovery.
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