Silico manganese prices in India dropped marginally as domestic as well as export demand for manganese alloys has softened.
Additionally, manganese ore prices have been declining for some time, which has given buyers scope to book material at lower prices. Silico manganese prices are currently being undermined by weak downstream demand, causing the market to remain subdued.
According to SteelMint’s assessment on 19 September, Raipur-based producers floated offers at around INR 74,000/tonne (t) exw, down by INR 700/t w-o-w, while prices in Durgapur were at INR 73,500/t exw, down INR 1,000/t against last week.
Responding to overseas enquiries, exporters offered 60-14 grade material at around $930/t, down $10/t from last week. Prices for 65-16 grade were assessed at $1,030/t FOB India, down $10/t w-o-w.
Last week, SteelMint recorded a trade volume of 6,200 t, indicating a downward market trend.
Factors keeping silico manganese prices under pressure
- Lower manganese ore prices: Manganese ore prices were down owing to weak demand amid production cuts in manganese alloys. Sellers reduced prices to boost buying interest.
- Imported coking coal prices down $13/t w-o-w: Coking coal prices decreased by $13/t owing to subdued steel demand. This has also put pressure on silico manganese prices.
- Bearish global silico manganese market: Bearish sentiments persisted in the global silico manganese market which dampened liquidity, thus, affecting domestic market prices.
- Lack of export enquiries continues: Indian exporters have been witnessing lack of inquiries due to multiple reasons: (i) Energy crisis continues in Europe, which is leading to cuts in steel production (ii) Typhoons are affectings countries in South East Asia, including Japan and South Korea, resulting in lower export inquiries for silico manganese, and thus lower prices.
- Steel prices fluctuate amid modest demand: Steel prices were driven by moderate demand and domestic prices fluctuated due to need-based purchases by buyers in some regions, which impacted the procurement cycles of distributors and stockists. The inconsistency in steel demand also helped to keep silico manganese prices down.
China market overview
Silico manganese (60-14) prices in China were stable at RMB 64,00/t ($912/t) exw-Inner Mongolia, while the 65-17 grade was stable at RMB 7,200/t ($1,026/t) exw-Inner Mongolia. China’s silico manganese market was steady last week but trade was tepid. The current scenario is such that there is pressure on manganese alloys sellers.
Meanwhile, silico manganese futures on the Zhengzhou Commodity Exchange (ZCE) for September delivery inched up w-o-w to settle at RMB 7,302/t on 20 September.
Outlook
The domestic market may remain weak for the short term with nominal fluctuations in silico manganese prices. However, manganese alloy prices may be affected by steel production volumes and market trends.
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