Indian silico manganese prices have dropped marginally on muted demand in the spot market. Producers are reluctant to book material due to the already-escalated prices.
According to SteelMint’s assessment on 29 Nov’21, silico manganese (60-14) prices have dropped by around INR 1,500-2,100/tonnes (t) w-o-w, and are currently hovering at around INR 95,000-96,350/tonnes(t) exw- from both Durgapur and Raipur.
Why have prices taken a dip?
- Subdued domestic demand: The wait-and-watch attitude of most buyers has subdued silico manganese demand. An increase in inquires had led to prices bouncing back. But the reluctance of buyers caused the same to dip once again.
- Dull export demand: The onset of the holiday season has negatively impacted export demand. Moreover, seaborne buyers are showing less interest in January-February shipments due to volatility in the silico manganese market. This has cool-off export prices too. Currently, exporters are offering $1,510/t, FOB India for 65-16 grades and $1,350/t, FOB India for the 60-14 grade. A major deal of around 6,000 t was concluded last week at $1,350/t FOB India for 60-14.
- Steel prices fall: Indian steel prices are on the lower side owing to supply-demand mismatch. Meanwhile, steel market participants are speculating on further correction in steel prices. So, steelmakers are trying to reduce their cost of production by going in for cheaper silico manganese. This has further dampened prices.
- Imported manganese ore prices down: Imported manganese ore prices are under pressure, relying on cost support to maintain stable operation. However, due to the high cost of ore holding, miners will not reduce prices further and it is expected that ore prices will remain stable in the future. This is forcing silico manganese producers to firm up their offers.
Outlook
Indian silico manganese prices may remain stable in the short term despite a lack of buying interest as most of the major producers are almost booked till December.
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