Silico manganese prices have come down, as the recent uptick in pricing last week lost steam.
Silico Manganese prices were down in the domestic market as previous price week’s level was not matching with buyer’s expectation, and willingness by producers and traders to conclude deals at lower prices. A producer from Raipur remarked, “Fundamentals can’t change overnight. Demand is still weak and supply plentiful.”
SteelMint assessed current price for grade 60-14 is around INR 39,000/MT (Ex-Durgapur) and INR 39,500/MT. According to sources, Prakash Industries is offering Silico Manganese at INR 38,500/MT (Ex-Champa, Chhattisgarh).
Prices failed to recover because supply demand imbalance of Silico Manganese in the market . Trading activity was largely muted, with buyers holding back because of a lack of available credit and a general sense of cautiousness when it came to procuring material, in the midst of poor steel fundamentals.
Silico Manganese Export Offers Drop on Absent Demand
Export offers for silico manganese are down this week as the market is under pressure on prevailing weak demand.
SteelMint learnt from sources that grade 60-14 is being offered at USD 600/MT FOB East-coast India, and grade 65-16 is being offered at USD 650/MT FOB East-coast India. Despite lowering the offer level, price expectations were not matching between buyers and sellers. Buyers are looking for offers at around USD 580/MT FOB East-coast India for 60-14 grade and USD 630/MT FOB East-coast India for 65/15 grade. A Kolkata based producer stated, “The market is very quiet and buying intent is really weak. Sellers cannot lower their prices more or else they would run at a loss.”
Indian producers believe that demand from Europe could pick up by next month, as the European buyers currently hold some stock. Indian producers are hopeful that their offers would be soon accepted in the export market.
On the future outlook SteelMint assessed that silico manganese prices were generally in line with market expectations and that reflected of a sluggish market, marred by very weak demand and chances of further fall in prices in the coming days can’t be ruled out.
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