Indian silico manganese prices have risen w-o-w last week. The ongoing war between Russia and Ukraine created a panic situation among domestic steelmakers and traders. The current international crisis created a temporary high demand in the major markets, leading to a rise in prices.
According to SteelMint’s assessment on 1 Mar’22, the current transactional prices of silico manganese in both Raipur and Durgapur markets have increased to INR 108,600/t exw for HC 60-14 grade. Meanwhile, exporters are offering at $1,460/t for 60-14 grade and $1,580/t for 65-16 grade, FOB India basis.
How is Russia-Ukraine war impacting Indian manganese alloys prices?
- Domestic demand improves: Domestic buyers started booking the material aggressively in hopes of a further hike in prices. SteelMint has recorded trades of over 8,000 t (from 22 Feb-26 Feb 2022) last week.
- Major producers hold offers: Many major producers stopped offering post-the announcement of war in an anticipation of good export inquires. They expect that global demand might shift to India as Russia and Ukraine serve 10% of the total exports volume of world’s steel commodities. India might be the most preferred export destination for Ukraine based seaborne buyers. This attributed to the shortage of material, resulting in a hike in prices of silico manganese.
Some sources explained, prices of silico manganese and ferro manganese may go upside in the coming days by INR 5,000-10,000/t on improved demand for exports from major buying countries. However, last week, the export market saw lack of enquiries due to container shortage and selling pressure in domestic as well as overseas markets. - Steel prices upbeat: The steel market showed an uptrend with active bookings seen at a rational price. However, there was still a shortage of the material in the market and prices varied from region to region. This also encouraged producers to raise their offers.
- Manganese ore prices rise: MOIL also increased their offers up to 15% m-o-m for March dispatches to maintain the price parity with international prices. This is likely to further support manganese alloys prices.
Ukraine’s market review
Ukrainian steelmakers still continue to operate amidst martial law. Producers were able to match the monthly production target till Dec’21, sources explained. However, all ports are banned in Ukraine, and the movement of the vessels are prohibited in the Black Sea. Thus, silico manganese inquiries are more likely to shift to India.
China’s market reviews
Silico manganese prices showed stability w-o-w. Market prices for 60-14 grade in Inner Mongolia were at RMB 7,450/t while in Guizhou were up by RMB 400 to RMB 7,500/t (ex-works). Manufacturers are anticipating a further price hike in the long term as prices of raw manganese ore are relatively strong which may increase the selling pressure due to rising inventory in the market.
Outlook
Manganese alloys market is bullish due to temporary increase in demand. The ferro alloys market is further expected to continue the uptrend in the coming week, SteelMint notes.
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