India: Silico manganese prices edge up amid supply-demand mismatch

Indian silico manganese prices have improved w-o-w since early CY’22 levels with marginal fluctuations seen due to supply-demand mismatches.

According to SteelMint’s assessment on 31 Jan’22, currently, the transactional prices of silico manganese are hovering at INR 101,500 – 105,000/t exw-Raipur, and INR 100,000-101,000/t ex-Durgapur for HC 60-14 grade. Meanwhile, exporters are offering at $1,385/t  for 60-14 and $1,530/t for 65-16 grade, FOB India basis.

In addition, SteelMint recorded around 4,500 tonnes of manganese alloys transactions this week in the spot market across regions.

Weekly highlights

• Supply-demand mismatch: There was good demand in the spot market from Indian producers. Yet, most of the major producers are booked till mid-March. This led to a material shortage in the domestic market, which further supported the prices of silico manganese.
• Domestic steel prices improve: Steel price in India increased marginally w-o-w as a result of high raw material prices. As a result, silico manganese producers raised their prices. On the other hand, steel demand was muted w-o-w as buyers resisted higher prices.
• Coke prices upbeat: Coke prices have risen by INR 2,000/t w-o-w to INR 50,000/t from the eastern region. Prices of coking coal increased globally due to supply restrictions, which in turn led to a hike in coke prices. Silico manganese prices also increased as a result.
• Domestic manganese ore prices under pressure: MOIL has rolled over its prices m-o-m for Feb-Mar’22 dispatches to maintain parity with imported manganese ore prices. Meanwhile, Sandur Mines decreased its base price for Mn 30-32% grade in a recent auction by 4% m-o-m due to a lack of demand as many manganese alloy smelters are interested in the imported material. This led to resistance to further price hikes in manganese alloys.

China’s market review
China’s silico manganese prices remained stable w-o-w at RMB 7,500/t exw-Inner Mongolia and Guizhou. Due to the Lunar New Year holidays, it is expected that silico-manganese prices will remain stable in the short term.

Outlook
Producers are optimistic about the silico manganese market and expect a further hike on improved steel prices and demand, as well as coke prices.