Prices in India corrected upwards guided by rising ore prices and supply crunch.
Producers were perceptibly satisfied with the commodity’s prices and trade levels.
However, a producer source claimed that supply crunch owing to low production is contributing to the rise in the commodity’s prices. “Some Silico Manganese producers have currently shifted their production to Pig Iron and low-grade Ferro Chrome due to weak margins in the manganese alloy market. The drifting prices of Alloys seem to be encouraging market players to lower production,” he said.
Contradicting him, another source said rising feedstock prices is the primary reason for the hike in Silico Manganese offers, adding that the number of producers shifting to other commodities is actually low and hence market movements cannot be determined solely by the production preferences of a handful of producers.
The manganese alloy market in China is firm, which is supporting global ore prices. This puts Indian buyers at a distinct disadvantage due to the depreciating INR vis-à-vis the USD.
Moreover, the winter season in South Africa is another reason for escalating global ore prices.
SteelMint assessed Silico Manganese prices at INR 64,000-65,000/MT (ex-Raipur) and INR 65,000-66,000/MT (ex-Durgapur).
In line with domestic demand, overseas inquiries, especially from Southern Asia, could well be characterized as decent.
However, export offers are assessed to be unchanged at USD 1,100/MT FOB India for 65-16 grade and USD 980/MT FOB India for the 60-14 grade.
Moving forward, market participants expect Silico Manganese prices to remain stable while some hinted at an upward correction in prices with a view to the prevailing situation.
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