India: Silico manganese prices fall further amid consistent weak demand

Indian silico manganese prices have been on a downtrend over the past three months amid sluggish demand. Most sellers reduced prices last week to attract buyers. Yet they remained elusive, expecting a further drop in prices.

According to SteelMint’s assessment on 23 May, Raipur-based producers offered at around INR 85,000/tonne (t) exw, down by INR 3,000/t w-o-w, while prices in Durgapur were at INR 83,000/t exw, dropping by INR 800/t against last week.

Responding to overseas inquiries, exporters offered around $1,180/t for 60-14 grade, down by $40/t from last week. Prices for the 65-16 grade were assessed at $1,350/t FOB India, down by $45/t w-o-w.

Meanwhile, SteelMint recorded trade volumes of around 2,000 t in a shrinking market scenario.

Factors that affected prices of silico manganese

• Both domestic and international inquiries were muted owing to sluggish buying interest at higher rates and uncertain market sentiments. Such a scenario resulted in a decline in silico manganese prices.
• Besides, the consequent decline in demand led to surplus stock at the mills and a consequent weakness in Indian steel prices. In response, prices of silico manganese fell.
•  Furthermore, manganese ore prices were affected by the downtrend in manganese alloys products as buyers of the former were less interested in the imported variety. This happened because of sluggish  demand and high inventories over the past few months.

China market overview

China’s silico manganese (60-14) prices fell by RMB 100/t to stand at RMB 7,400/t ($1,079/t) exw-Inner Mongolia, while the 65-17 grade was offered for RMB 8,250/t ($1,236/t) exw-Inner Mongolia. China’s silico manganese prices declined due to consistently weak demand and declining raw material prices. In the short term, silico manganese prices in China are expected to remain weak but stable.

Outlook
As per the current scenario, market participants expect prices of silico manganese to remain bearish amid the downtrend in the steel market. Moreover, the hike in the export duty on crude steel might also impact manganese alloys prices in the near future.