Silico manganese prices in India inched down as domestic and export demand for manganese alloys weakened. Additionally, manganese ore prices have been stable for quite some time, which has allowed buyers to take advantage of lower prices.
Steel demand being moderate has weighed on silico manganese prices. Some domestic deals on the lower price of silico manganese also contributed to the decline in prices.
As per SteelMint’s assessment, Raipur-based producers offered at around INR 76,400/t exw, down by 2% w-o-w, while in Durgapur prices were at INR 75,400/t exw, a decrease of 3% w-o-w.
Meanwhile, quotes by producers for grade 60-14 remained at INR 76,500-77,500/t exw-Raipur. On the other hand, Durgapur producers were heard quoting at around INR 76,000-77,500/t exw. However, offers by traders hovered at around INR 75,500-76,500/t exw in both Raipur and Durgapur amid softening demand.
During the week, SteelMint recorded trade volumes of around 3,500 tonnes (t) of manganese alloys in the domestic market.
Indian exporters offered at around $970/t FoB for the 60-14 grade, down by 1% from last week, while prices for the 65-16 grade were assessed at $1,075/t FOB, unchanged. Prices fell amid limited export inquiries and a lack of demand since last week.
SteelMint recorded trade volumes of around 4,200 t in the export market.
Factors limiting silico manganese prices
- Global sentiments are bearish: Bearish attitudes influenced the prices of silico manganese globally, which decreased liquidity and consequently reduced local pricing. Due to conflicting opinions, demand for silico manganese in both the local and export markets were constrained.
- Low prices sought by overseas buyers: Lack of buying interest and uncertain market conditions led to limited international inquiries. In comparison with offers, seaborne buyers sought material at much lower prices. But it was difficult for smelters to sell material at such low prices, which led to low export transactions. Consequently, prices for silico manganese inched down.
- Moderate domestic steel demand: Moderate demand for domestic steel last week was accompanied by limited requests for bulk orders as well as limited purchases at higher prices, which kept silico manganese prices down. SteelMint’s daily steel billet index was assessed at INR 47,225/tonne (t) (down by INR 175/t) exw-Raipur on 31 January, 2023.
Outlook
Prices for silico manganese are likely to remain firm in the near future. However, manufacturers are anticipating a positive result on a surge in overseas enquiries.
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