India: Silico manganese prices decline amid lower demand

Silico manganese prices in India continued to decline despite lowering of demand. Due to high production costs, producers were not very active with their offers last week and manufacturers refused to sell at low prices due to this. However, the traders were more interested in buying at lower prices. The domestic and overseas markets had limited inquiries, but mixed sentiments prevailed.

According to SteelMint’s assessment on 29 August, 2022, Raipur-based producers offered material at INR 78,300/t exw, down by INR 900/t w-o-w, while Durgapur prices dropped by INR 1,500 to INR 77,300/t exw — almost unchanged from the previous week.
In response to overseas enquiries, exporters offered 60-14 grade material at around $970/t and prices for 65-16 grade were assessed at $1,070/t FOB India. SteelMint recorded trade volumes of around 7,800 t in a weak market.

Factors influencing prices

• Selling pressure: Despite selling pressure on the manufacturer’s side, buyers were looking for lower prices. On the other hand, demand was low. This resulted in a decrease in prices of silico manganese.
• Manganese ore prices down: Manganese ore prices declined because of lower domestic demand owing to production cuts, which led to the fall in silico manganese prices.
• India’s steel prices fall amid weak market inquiries: Steel prices were on a downtrend amid lack of inquiries from the domestic market. In addition, the export- duties imposed by the Indian government led to weak steel demand which resulted in further drop in silico manganese prices.

China market overview
Silico manganese (60-14) prices in China are stable at RMB 6,400/t ($935/t) exw-Inner Mongolia, while 65-17 grade is being offered at RMB 7,075/t ($1,033/t) exw-Inner Mongolia.
However, silico manganese futures on the Zhengzhou Commodity Exchange (ZCE) for October delivery climbed w-o-w to RMB 6,998 /t on 22 August.

Outlook
Silico manganese prices in India are expected to remain flat with minor fluctuations due to mixed sentiments amid the downturn in the steel market.