Indian silico manganese prices, which had been downtrending for a couple of weeks, have now picked up on improved buying interest. Currently, producers are offering at around INR 94,000 to 96,000 /tonne (t) exw for both Raipur and Durgapur, depending upon the quantity and payment terms.
A few silico manganese smelters informed SteelMint that, although, there is not much demand in the market, inventories of steel mills are about to get exhausted. Hence, they have started booking the material before their operations get impacted. However, silico manganese sellers have not missed the boat to increase their offers a bit after hearing that steel prices have firmed up.
Chinese silico manganese prices remained on the upward side owing to limited supply due to electricity restrictions in Guangxi province, one of the largest manganese alloys producing regions.
Export inquiries are still lagging amidst higher freight costs in line with container shortages. Meanwhile, demand from Europe is subdued owing to the holiday season. According to SteelMint’s assessment, exporters are offering at $1,430/t FoB India for 65-16 grade.
Global buyers, who were solely dependent on Russia for booking silico manganese, are now searching for new markets as the Government of Russia (GoR) imposed an export tax of $150/t on ferro alloys from 1 Aug’21 to the end-Dec’21 to control domestic inflation.
On the other hand, MOIL has rolled over manganese ore prices for Aug’21 dispatches. This has further influenced domestic producers to keep their offers firm. Despite smelters remaining stable with their offers, some traders are expecting that prices may go down further which restricted buyers from booking the material.
Outlook
The recent increase in silico manganese prices is more due to international steel prices than demand-driven. However, the increase in production from induction furnaces is also supporting positive sentiments among Indian smelters. Overall, the market is optimistic that demand recovery will happen post-monsoon.
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