Silico manganese prices remained range-bound amid mixed demand trends last week. There was a rise in demand in the domestic market while the same from the overseas markets remained subdued. As a result, manufacturers had to cut back production to recover input costs in some major producing areas, which kept prices range-bound.
As per SteelMint’s assessment on 12 August, Raipur-based producers offered material at INR 77,500/t exw, up INR 1,000/t w-o-w, while prices in Durgapur increased by INR 800 w-o-w to INR 75,800/t exw.
Responding to overseas inquiries, exporters offered 60-14 grade material at around $960/t, up by $5/t from last week. However, Prices for the 65-16 grade were stable at $1,060/t FOB India. SteelMint recorded trade volumes at around 4,500/t in a modest market.
Factors keeping silico manganese prices range-bound
- Despite the rising raw material costs, silico manganese manufacturers decided to cut monthly production by 20-30% to match production costs. This resulted in prices moving in a narrow range.
Inquiries have been coming in from the Middle East and South East Asia but since no deals were concluded, this did not have much impact on prices. - Domestic steel demand was moderate last week with limited inquiries for bulk bookings, which also kept prices range-bound.
China market overview
Silico manganese (60-14) prices in China were stable at RMB 6,400/t ($948/t) exw-Inner Mongolia, while the 65-17 grade dropped by RMB 75/t to RMB 7,075/t ($1,058/t) exw-Inner Mongolia. Low demand continued to push up manganese ore inventories, which had an adverse impact on silico manganese prices in China.
The decrease in silico manganese consumption was coupled with low supply due to the off-season. However, silico manganese futures on the Zhengzhou Commodity Exchange (ZCE) for September delivery were up 2% w-o-w to RMB 7,388 /t on 16 August 2022.
Outlook
Prices of silico manganese might remain stable in the short term. Moderate steel demand might contribute to keeping prices firm.
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