- Producers keep offers firm amid stable production costs
- Inquiries improve but procurement continues on need basis
Indian medium-carbon silico manganese prices remained largely stable w-o-w, edging up by INR 200/t ($2/t) to INR 87,700/t ($911/t) ex-works Durgapur on 23 July. Offers were heard at INR 87,200-88,500/t ($906-920/t), while a 410 t transaction was concluded at INR 88,000-89,000/t ($914-925/t), reflecting firm seller expectations.
Prices remained largely stable as balanced supply offset need-based procurement by steel mills and limited export demand, leading to producers maintaining firm offers.
Factors affecting prices
Balanced supply keeps prices steady: Prices remained largely stable during the week as balanced supply and comfortable inventories offset subdued export demand. Steel mills continued to procure only against immediate requirements, limiting aggressive buying activity. Nevertheless, producers maintained firm offers, supported by stable production costs and the absence of significant inventory pressure.
A Durgapur-based seller said enquiries improved marginally, but buyers remained price-sensitive, resulting in transactions only within prevailing offer levels.
Need based buying persist despite firm offers: Demand from domestic steel mills remained largely need-based, with buyers avoiding bulk purchases amid cautious sentiment in the finished steel market. While export enquiries stayed limited, producers resisted discounting due to balanced supply conditions and stable input costs. This restrained buying pattern kept transaction activity moderate, allowing prices to edge up only marginally while preserving an overall steady market tone.
Outlook
Prices are expected to remain largely stable, with steel demand, export enquiries, and raw material costs guiding near-term direction.
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