Silico manganese prices were marginally down as offers were largely ignored by buyers amid bearish steel market.
The biggest problem for the Silico Manganese market remained weak steel margins, which constrained demand from steel mills who continued to buy hand-to-mouth. A Silico Manganese producer remarked, “Steel performance is really bad and prices keep tanking so mills are very wary of taking silico manganese.”
Given limited buying appetite for Silico Manganese in India and the underlying weakness in the steel market, Silico Manganese 60-14 is currently being offered at INR 39,500/MT (Ex-Raipur) and INR 40,000/MT (Ex-Durgapur).
Silico Manganese Export Prices Hold Steady; Sentiment Still Poor
In the export market, Indian Silico Manganese FOB prices had continued on a sharp decline for few weeks on account of weak demand and willingness by sellers to lower prices to attract buyers. However, most Indian producers reported of poor overseas demand and seemed gloomy over the current market situation and said market is unlikely to recover this year.
SteelMint assessed grade 60-14 is currently being offered at around USD 620/MT FoB East-coast India and 65-16 is being offered at around USD 680/MT FoB East-coast India.
Mounting steel inventory is also a concern for the producers. “An overhang of supply in the market with already weak steel demand has caused pricing opinion to turn bearish,” stated a producer from Kolkata.
Market Sources agreed there was less momentum in the market with fewer inquiries received as there are more sellers than buyers in the market, which is leading to drop in prices.
Exchange Rate: USD 1 = INR 66.7
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