Silico Manganese prices in the domestic market kept falling throughout the past week. The prices have fallen by INR 2000/MT since last Monday. The fall in prices have been continuous as the market is flooded with alloys as demand remains tepid. Meanwhile, the producers are facing severe cash flow issues and are trying hard to liquidate their stocks as uncertainty looms around the steel market.
Silico Manganese prices have come down to INR 63,000/MT, in both major markets, Durgapur and Raipur.
The export market also seems to be affected by the sluggish global steel market. As most of the Steel mills are producing at reduced operational rates and are yet to recover from the COVID-19 disruptions. Producers remain restless as the prices are falling continuously on both fronts – domestic and overseas. Prices in the export market are at around USD 845/MT (-25 USD/MT W-o-W) for 60-14 grade and USD 960-980/MT (-20 USD/MT W-o-W) for 65-16 grade. A major exporter of Ferro Alloys shared with SteelMint that the demand from Europe and other major importing countries are slow and that could be worrisome. Meanwhile, A Durgapur based producer also shared similar sentiments for the export market and he pointed out that the prices in the domestic market and the export market don’t have much difference owing to the present lacklustre scenario.
Outlook
SteelMint assessed that the prices may fall further in the coming weeks as selling pressure intensifies further with the producers facing a severe liquidity crunch.
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