India: Silico manganese prices plunge as buyers negotiate

Indian silico manganese prices have started sinking since last week due to a lack of buying interest at higher prices. Buyers are aggressively negotiating with producers and booking material at lower prices.

Meanwhile, due to selling pressure, producers are willing to take orders for the month before going into Diwali mode, as India’s largest festive season is at hand.

SteelMint assessed prices on 2 Nov’21, of silico manganese 60-14 grade are at INR 109,900/t exw Durgapur and INR 117,100/t exw Raipur, India’s largest silico manganese producing regions – down by INR 13,550-15,550/t in both regions as against the prices on 26 Oct’21.

Highlights on reducing prices

• India’s silico manganese plants are running to full capacity despite the higher cost of raw materials. Moreover, some new players have restarted silico manganese production In India. This intensified the oversupply . As a result, consumers are bargaining hard.
• Silico manganese producers are still getting good profit margins at the current market prices. Buyers are much aware of the current situation which is enabling them to actively negotiate. Meanwhile, the fall in prices is encouraging producers to sell their maximum material before prices fall further. And, which may create a shortage in the near term.
• Silico manganese export prices for 60-14 and 65-16 grades have also decreased at $1,700-1,900/t FOB India, following the reduction in Chinese prices. India is the largest exporter of silico manganese and the country follows the price parity with China, the world’s largest producer of silico manganese ,with a production of around 12 mn t in 2020.
• China’s silico manganese futures fell because most of the largest steel mills have booked the material at lower prices. The decline in Chinese futures prices also dampened the spot prices in China, followed by India. Meanwhile, some market participants (both buyers and sellers ) are waiting for the purchase tender prices of HBIS (the world’s third-largest steel producer and a silico manganese price driver ).