Silico manganese prices remained range-bound last week despite an increased cost push. Prices of raw materials like manganese ore, coal and electricity rose in domestic markets.
Profits of silico manganese manufacturers have fallen of late, and producers have adopted a wait-and-watch mode where procurement of raw materials is concerned. Some manufacturers have cut down their production temporarily on reviewing the uncertainty in the market, sources said.
As a result, silico manganese prices remained range-bound with marginal fluctuations seen last week.
As per SteelMint’s assessment on 14 June 2022, Raipur-based producers offered the material at INR 80,400/t exw, up by INR 1,400/t w-o-w, while prices in Durgapur rose by INR 2,000 w-o-w to INR 80,000/t exw.
Responding to overseas inquiries, exporters offered 60-14 grade material at around $1,040/t, nominally down by $10/t from last week. Prices for the 65-16 grade were assessed stable at $1,190/t FOB India. SteelMint recorded trade volumes of around 14,300 t in a weak market.
Factors influencing silico manganese prices
- Despite the rising raw material cost push, silico manganese manufacturers decided to keep prices at around INR 80,000/t due to sluggish demand.
- Steel demand in India was low with nominal price changes, which kept silico manganese demand low and prices unchanged.
China market overview
Silico manganese (60-14) prices in China are stable at RMB 7,350/t ($1,091/t) exw-Inner Mongolia, while the 65-17 grade is being offered at RMB 8,205/t ($1,218/t) exw-Inner Mongolia. Prices remained stable despite a weak demand environment in the domestic market.
However, silico manganese futures on the Zhengzhou Commodity Exchange (ZCE) for September 2022 delivery climbed w-o-w to RMB 8,582 /t on 12 June.
Outlook
Producers expect silico manganese prices to rise to INR 85,000/t levels over the coming months as the current market prices seem to have bottomed out, shrinking profits in the process, sources informed.
.jpg)
Leave a Reply