Silico Manganese prices soared higher for the third week in a row, as sources said the market was being driven by extreme supply tightness.
Silico Manganese prices edge up in the domestic market as demand for the material rises. Persistent problem of supply shortage continues in the market. Silico Manganese 60-14 is being offered at INR 59,000 MT (Ex-Raipur). According to sources, Prakash Industries is offering Silico Manganese at INR 58,000/MT Ex-Champa, Chhattisgarh. In Durgapur, Silico Manganese 60-14 is at around INR 58,000/MT. Market participants said, Silico Manganese was scarce and increasingly difficult to source. Sellers were also said to be withdrawing offers as prices raced up through the day.
As the Supreme Court has suspended mining operations in 6 Manganese ore mines from Odisha, a miner source indicated to SteelMint that there will be shortage of Manganese ore in the market. Ore from Odisha is used to blend with high-grade imported Manganese ore, or the ore procured from MOIL, which have lower Fe content but are higher priced.
[su_quote]A producer source from Raipur stated, “The market is bullish and I see it going higher now. Tight supply is the fundamental.”[/su_quote]
Export Market
Indian producers of Silico Manganese have raised offers for the overseas market owing to the strengthened INR (Indian Rupee is at an 11-month high vs dollar at 58.6 /USD); making domestic sales a more lucrative option for the manufacturers.
In the export market, Indian producers have raised offer levels as the realization from exports is lower than the domestic market, with the strengthening INR against the USD. Silico Manganese 60-14 is being offered at around USD 940/MT FoB East-Coast India and 65-16 grade offered at USD 1,050/MT FoB East-Coast India.
However, few producers are currently not offering Silico Manganese in the export market as there is price expectation gap between buyers & sellers.
On the future trend, most market participants believe there is a possibility of a further price-rise in the domestic market, due to limited availability expected in the coming days.
Exchange Rate: USD 1=INR 58.76
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