Domestic silico manganese prices remained range-bound last week, with a nominal INR 500/t increase seen. As a result, domestic demand saw considerable uptick along with some overseas inquiries as well. In order to recover input costs, manufacturers across regions had to cut production. This led to the prices remaining more or less stable.
As per SteelMint’s assessment, Raipur-based producers offered at around INR 73,500/t exw, stable w-o-w, while, in Durgapur, prices were at 73,800/t exw, also stable w-o-w.
Meanwhile, producers’ quotes for grade 60-14 remained at around INR 72,500-74,500/t exw-Raipur. On the other hand, Durgapur producers were seen quoting at INR 72,500/t-73,500/t exw. However, traders offered at around INR 72,500-73,500/t exw in both Raipur and Durgapur amid moderate demand.
During the week, SteelMint recorded trade volumes of around 5,400 tonnes (t) of manganese alloys in the domestic market.
Responding to overseas inquiries, exporters offered at around $910/t FOB for 60-14 grade, down $10/t from last week, while prices for the 65-16 grade were assessed at $1,000/t FOB, down $15/t w-o-w. However, export enquiries were still limited, which led to the w-o-w fall in prices.
SteelMint recorded trade volumes of around 1,000 t in the export market, amid soft demand.
Factors limiting the price range of silico manganese
- High cost of manufacturing: Manufacturers are not keen to sell their material at low prices in the export markets because silico manganese has a high cost of production. On the other hand, domestic demand stayed modest. Silico manganese prices were range-bound as a result of this.
- Prices of imported manganese ore mostly steady: Meanwhile, manganese ore import prices were nearly stable w-o-w. Currently, the price of manganese ore (37%) from South Africa is about $4.25/dmtu CNF India. This has also encouraged producers to keep manganese ore prices stagnant.
- Export prices may be affected by exchange rates: A depreciation of the Indian rupee (INR) against the US dollar is likely to affect export prices for seaborne buyers. Thus, Indian smelters have received lower rates for Indian manganese alloys in the export market, which also restrained prices of silico manganese. The rupee was quoted at 82.79 per dollar, up 1% w-o-w.
- Moderate domestic steel demand: Domestic steel demand was moderate last week with limited enquiries for bulk bookings, which also kept prices range-bound. SteelMint’s daily steel billet index was assessed at INR 43,500/tonne (t) (+ INR 500) exw-Raipur on 12 December, 2022.
Outlook
Market prices of silico manganese are expected to fluctuate in the short-term, and demand for related products might influence prices. Additionally, there has been an increase in international inquiries over the last few days, and producers are expecting a good outcome from this scenario.
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