India silico manganese prices remained range-bound amid lower demand in the domestic market which showed lesser inquiries from the buyer’s side last week. As a result, trade declined in the domestic market. Also, the market was expecting that the increase in raw material prices might keep silico manganese prices strong but that did not happen amid lower demand.
According to SteelMint’s assessment, Raipur-based producers offered at around INR 108,000/t exw while prices in Durgapur were reduced by INR 2,000 to INR 106,200/t exw.
Exporters are offering at around $1,490/t for 60-14 grade, down by $30/t from last week, while prices for the 65-16 grade are assessed at $1,590/t FOB India, down $20/t.
Why did silico manganese prices remain range-bound last week?
- Higher inventory in the market: Higher inventory was available in the domestic market, especially on the buyer’s side, which decreased buying interest for a temporary period, keeping prices stable.
- Low overseas inquiries owing to container shortage: Container shortage at ports still exists which supports lower demand from overseas and further helped prices to stay range-bound.
- Indian steel market continues to be volatile: The steel market in India exhibited volatile sentiments last week due to dull demand, and lack of buying inquiries owing to uncertain market trends. An increase in commodity prices was not absorbed by buyers who did not show interest in buying at higher prices.
China market overview
China’s silico manganese (60-14) prices were at RMB 7,600/t ($1,210/t) exw-Inner Mongolia, while 65-17 grade material was offered at RMB 8,395/t ($1,319/t) exw-Inner Mongolia. The market was active with trade volume increasing slightly compared to the previous period. Prices of silico manganese were well supported. But whether the upside will sustain, remains to be seen.
Outlook
A downtrend is being perceived owing to the high inventory and lower demand and this may allow the market to consolidate in the short term, despite the increasing prices of manganese ore.
However, it is expected that silico manganese prices from Vizag might increase in the near term, as supply of electricity to industries has been cut by 50% and power tariffs have also gone up, sources informed.
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