Silico manganese prices remained range-bound last week despite a limited demand in the domestic markets. However, there was a considerable local demand, but there were negligible queries from outside. Manufacturers in different locations had to cut back on output in order to recoup input costs, which maintained prices in the middle of a range.
As per SteelMint’s assessment, Raipur-based producers offered at around INR 82,300/t exw, which dropped by 1% w-o-w, while in Durgapur prices were at 82,400/t exw, nearly stable w-o-w.
Meanwhile, producers’ quotes for grade 60-14 remained at around INR 82,500-83,500/t exw-Raipur. On the other hand, Durgapur producers were seen quoting at around INR 83,000/t exw. However, traders offered at around INR 81,500-82,500/t exw in both Raipur and Durgapur amid softening demand.
During the week, SteelMint recorded trade volumes of around 4,500 tonnes (t) of manganese alloys in the domestic market.
Responding to overseas enquiries, exporters offered at around $1020/t FOB for 60-14 grade, up by 4% from last week, while prices for the 65-16 grade were assessed at $1,120/t FOB, up 5% w-o-w. Prices rose amid limted export enquiries and rising prices of raw material since last week, which led to the w-o-w rise in prices.
SteelMint recorded trade volumes of around 1,500 t in the export market amid an improved demand.
Factors limiting the price range of silico manganese
- Lower offers from traders: To attract buying interest in the domestic market, traders offered silico manganese at prices which are lower than those offered by manufacturers. Due to lack of 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 high costs.
- 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 46,700/tonne (t) (- INR 700 w-o-w) exw-Raipur on 10 January, 2023.
Outlook
Manganese alloy demand is still strong and India’s supply is dropping due to limited production. Consequently, silico manganese prices might have an impact in the near future. It is possible that prices of material could fluctuate further if export enquiries increase and the demand for steel increases.
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