Indian Silico Manganese prices correct downwards as demand has failed to rebound.
Silico Manganese sellers have been concerned with deteriorating external demand and are faced with rising selling pressure in the domestic market. Market sources reported that they are finding it difficult to sell at higher prices as few producers that are desperate to sell are bringing prices down for everyone in the market. Despite a strong steel market, the buyers are showing reluctance to make purchases as they are attempting to pull the prices down.
“There is a bearish sentiment in the market. The downward trend in ferroalloy market in India has raised cautiousness among the buyers,” said a producer source justifying the slip in Silico Manganese price. Many buyers have pulled out of the market and are waiting to see if prices go even lower.
SteelMint assessed Silico Manganese prices at INR 65,000/MT (Ex-Durgapur) and (Ex-Raipur).
“The overseas market has been the major reason for the downward movement in prices as demand seems to have dried out,” said a source expressing concern on slipping export prices as well.
The export offers are assessed at USD 990/MT FOB India for 60-14 grade and USD 1090/MT FOB India for 65-15 grade.
Moreover, SteelMint learned that the depreciation of INR against USD has allowed exporters to reduce prices to entice buying, as they stand to gain from the Rupee depreciating.
On the future outlook, market participant expects the Silico Manganese prices could slightly move down before stabilizing.
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