Indian silico manganese prices in Durgapur remained stable, while in Raipur prices came down marginally after MOIL lowered the prices of manganese ore by up to 7.5pc. Indian Silico manganese demand has been down for a few weeks now, due to confluence of factors stated below:
Downtrending steel market
The global steel market has been down amidst lower consumption of steel. Meanwhile, many European countries are absent owing to lockdowns declared amid a second wave of Covid. The steelmakers in India have sufficient inventory and are refraining themselves from overstocking ferro alloys, considering the uncertainty in the demand.
Oversupply in the domestic market
MEIS incentives which were capped at 2crs for exports have been exhausted by many producers, and they are allocating more quantity in the domestic market. Thus, the situation of oversupply has intensified in the domestic market and might dent the prices further.
Domestic ore prices fell to maintain the price parity
MOIL, the largest producer of manganese ore reduced the prices of manganese ore by upto 7.5pc m-o-m to maintain price parity with the seaborne prices. However, this could have a negative effect on the silico manganese prices. Although, silico manganese prices had already corrected in Raipur last week, post-release of MOIL’s prices offers have come down to INR 58,000/t.
Current Price assessments:
Silico manganese prices in Raipur region is at INR 58,000/t (-INR 250/t w-o-w), and the prices in Durgapur are stable at INR 58,500- 59,000/t. Meanwhile, Vizag is stable at INR 59,000/t with no shift in prices since last week. Export prices for 60-14 is at around $800-810/t and 65-16 is at $850-860/t.
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