India’s silico manganese prices have been increasing since last week due to shortages in supplies and an increase in domestic and overseas demand. As per SteelMint’s assessment, Raipur-based producers offered material at around 77,000/t exw, up INR 4,000/t w-o-w while the Durgapur material was at 75,400/t exw, up INR 2,900/t w-o-w.
Meanwhile, producers’ quotes for grade 60-14 remained at around INR 76,500-77,500/t exw-Raipur, while Durgapur producers were seen quoting at INR 75,000-76,500/t exw.
However, traders offered at around INR 74,500-76,000/t exw in both Raipur and Durgapur amid improving demand.
During the week, SteelMint recorded trade volumes of around 4,500 tonnes (t) of manganese alloys within the domestic market.
Responding to overseas enquiries, exporters offered at around $925/t FOB for 60-14 grade, up $35/t from last week, while prices for the 65-16 grade were assessed at $1,025/t FOB, up $45/t w-o-w. As a result of improved enquiries from overseas, silico manganese export prices eged up.
SteelMint recorded trade volumes in the export market at around 6,000 t amid soft demand.
Factors supporting a rise in silico manganese prices
- Supply-demand mismatch: Indian producers experienced good demand in the spot market. The majority of big producers are already booked through November 2022. In addition, some producers held their offers in anticiption of further hike in the near term. Consequently, silico manganese prices rose as a result of material shortage in the domestic market.
- Moderate domestic steel demand: Domestic steel demand was moderate last week with limited enquiries and bookings, which kept prices on the higher side. SteelMint’s daily steel billet index was assessed at INR 46,750/tonne (t) (- INR 1,650/t w-o-w) exw-Raipur on 18 October.
- Coking coal prices upbeat: Imported coking coal prices inched up by 1% w-o-w, which is pushing up the production cost of silico manganese. Currently, premium coking coal, CNF Paradip, stands at around $308/t.
- South Africa’s Transnet strike impact on manganese exports: Due to the strike at Transnet, the manganese miners were facing problems with logistics and port operations. This further led to a rise in silico manganese prices.
Outlook
Since domestic demand for manganese alloys is still supported to a certain extent and India’s manganese alloys production has decreased, silico manganese prices may trend upward in the near future. It appears that export enquiries have resumed in the market, so prices have room to recover further.
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