Silico manganese prices remained range-bound last week amid less than average local demand. During the week, SteelMint recorded modest trade volumes of around 3,500 tonne (t) of manganese alloys in the domestic market.
There were negligible queries in terms of exports. Manufacturers across locations had to cut back on output in order to recoup input costs, which showed moderate uptrend.
As per SteelMint’s assessment, Raipur-based producers offered at around INR 74,800/t exw, nearly stable w-o-w. Durgapur prices were at 74,000/t exw, down by 1% w-o-w.
Meanwhile, producers’ quotes for grade 60-14 remained at around INR 74,500-75,500/t exw-Raipur. On the other hand, Durgapur producers were seen quoting at around INR 74,000/t exw. Traders offered at around INR 73,500-74,500/t exw in both Raipur and Durgapur amid softening demand.
Responding to overseas enquiries, exporters offered at around $930/t FOB for 60-14 grade, down by 1% from last week. Prices for the 65-16 grade were assessed at $1,040/t FOB, nearly stable w-o-w. Prices dropped amid limited export enquiries and bearish market trends globally, which led to w-o-w fall in prices.
SteelMint recorded trade volumes of around 1,000 t in the export market amid muted demand.
Factors keeping silico manganese prices range-bound
- Lower offers from traders: To attract further buying interest in the domestic market, traders offered silico manganese at prices which were lower than those offered by manufacturers. In a bid to balance out the moderate demand in the local market, some producers began reducing their output of manganese alloys. This is the reason why prices remained range-bound.
- Weak global market: The downtrend in global silico manganese prices amid bearish sentiments influenced domestic pricing as well. Due to conflicting opinions, demand for silico manganese in both the local and export markets were constrained. Domestic silico manganese prices were range-bound as a result of restricted purchasing at higher offers.
- Moderate domestic steel market: Domestic steel demand was moderate last week with limited inquiries for bulk bookings, which also kept prices range-bound. SteelMint’s daily steel billet index was assessed at INR 46,625/tonne (t) ( up INR 475 w-o-w) exw-Raipur on 7 March, 2023.
Outlook
Manganese alloys’ demand fell on the back of low demand for steel. India’s supply of manganese alloys decreased because of limited production. Consequently, silico manganese prices might be impacted in the near future. 
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