Indian silico manganese prices have started rebounding after a continuous slump seen in the first two weeks of Nov’21. Domestic producers are now firm in their offers on lower inventory, while export demand is still lagging.
SteelMint’s assessment as on 22 Nov’21:
Prices in INR/tonne (t)
Although prices are now showing a stable growth rate, the fall is quite significant when compared to the previous month. Due to higher profit margins, some major producers in India had restarted their furnaces. However, this had a cascading affect. Durgapur has oversupply of silico manganese, leading to and pessimism in the domestic market, whichwas further strengthened when some export deals were cancelled by the buyers.
Meanwhile, exporters are offering the 65-16 grade for Jan-Feb’22 shipments at $1,550/t FOB India. Butseaborne buyers are interested in immediate shipments, reducing export demand from the Indian market.
Why are prices gaining upward momentum?
- A major tender was concluded at a higher level towards the end of last week. This is encouraging producers to hike their offers.
- There was a negative reaction in the domestic market regarding the falling prices. However, traders, who were mostly active in the market, have now slowed down since their inventories are reducing.
- Although steel prices have slumped, silico manganese smelters received enough inquiries . This boosted the confidence of the sellers to increase prices.
China’s prices cut by RMB 400-600/t ($63-94/t) w-o-w
Chinese prices are continuously falling owing to poor demand. Some producers had to cut their production due to increased electricity costs. However, in some instances, Indian producers are following price disparity with Chinese prices and increasing their offers amid rising inquiries from the domestic market.
Outlook
Silico manganese demand is increasing while producers are firm with their offers. There might not be further fall in prices in the near term amid the optimistic outlook.
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