Silico manganese prices continue to rise on stronger end-user demand and a bullish steel outlook supported sentiment.
Prices have gone up mainly because there is excess shortage of supply. Along with this demand appeared to be stronger as mills said they were willing to pay more given the perceived optimistic outlook for the steel market.
SteelMint assessment of silico manganese prices is INR 47,000/MT (Ex-Raipur) and INR 44,000/MT (Ex-Durgapur). According to sources, Prakash Industries is offering Silico Manganese at INR 46,000/MT (Ex-Champa, Chhattisgarh).
“I’m bullish about the market as there are many reasons pointing towards a rise in prices,” said a producer source from Raipur. Discernibly stronger buying interest, combined with tighter domestic supply, motivated sellers to hike offers.
Silico Manganese Export Offers Rise
Silico manganese offer prices in the export market have also increased on higher domestic prices in the export market.
Overseas demand for Indian origin Silico Manganese is low, and market sources reported of largely lackluster demand scenario. Indian producers reported they have stopped offering in the export market as realization from exports is lower than the domestic market. Prices have also increased because ore prices are high and hence it very difficult for producers to lower their offer levels.
SteelMint assessed that grade 60-14 is being offered at around USD 640/MT FOB East-coast India, and grade 65-16 is being offered at around USD 690/MT FOB East-coast India.
On the future trend, most market participants believe there is a possibility of a further price-rise in the domestic market, due to tighter availability expected in the coming days.
Exchange Rate: USD 1 = 67
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