Indian silico manganese prices are touching sky high amidst a bullish outlook owing to higher cost of raw materials and improving demand post-festive holidays. Most of the steelmakers are low on inventory and are actively trying to book material.
Producers are increasing offers on bullish market sentiments by INR 7,500-8,600/tonne (t) w-o-w in both Durgapur and Raipur.
As per SteelMint’s assessment, on 18 Oct’21 the prices for the 60-14 grade silico manganese had skyrocketed to INR 135,000/t exw-Raipur and INR 130,450/t exw-Durgapur. A decent quantity of manganese alloys was booked by domestic and export buyers yesterday.
Export demand pick-up
According to the present scenario of material shortage due to production cuts worldwide, seaborne buyers are showing good interest in Indian silico manganese, despite the high-cost container shortage.
Indian exporters are offering at $1,990/t FOB India for the 65-16 grade – up by $230/t w-o-w on 18 Oct’21. The higher prices were mainly accepted by European buyers due to tight supply. This is the result of production curbs on rising energy costs in Europe, as per reliable sources.
Coke, coal gain upward momentum
Record-high coal and coke prices due to lack of supply have impacted the production cost of silico manganese, which is urging producers to offer all-time high prices.
High-grade manganese ore prices on the rise
High-grade manganese ore requires lower electricity consumption compared to low-grade ore during production of manganese alloys. Major manganese ore miners have lifted the offers for the high-grade due to rising demand, electricity surcharges and easing of production in Inner Mongolia. Thus, producers are able to increase silico manganese offers.
Steel prices are on higher side
Steel prices are on upward as domestic demand has become stronger owing to the ongoing festive season. This is further supporting silico manganese prices.
Moreover, upcoming manganese alloys tenders from major steel producers might create supply crises in the spot market, which could push up prices of silico manganese in the near term.
Outlook
Market participants feel prices of silico manganese would be on an uptrend amidst bullish market sentiments.
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