Silico Manganese producers raise their offers on costlier raw material as the USD gains on INR.
“Despite the production levels normalizing, the attempts by the producers to match with export offers has hiked the domestic prices,” said a producer source citing the power restriction earlier and curtailed production of the Alloy.
“The INR crossing 72 vis-à-vis the USD has added significantly to the imported raw material (Manganese Ore and Met Coke) cost,” said another source referring to the volatile Indian currency.
SteelMint assessed Silico Manganese offer at INR 67,500-68,000/MT (Ex-Raipur) and INR 68,000-69,000/MT (Ex-Durgapur).
The scarcity of Silico Manganese in China has forced the buyers to accept higher offers which in turn encouraged the Manganese Ore miners to raise ore prices globally. “There is still active buying from China which is leading to higher seaborne Manganese Ore prices,” said a source.
“Following surging Silico Manganese prices in China, the Chinese buyers are eyeing the Indian commodity,” said a source referring that traditionally China does not import Silico Manganese from India.
Considering decent demand from overseas, the export offers of Silico Manganese remains firm at USD 960/MT FOB India for 60-14 grade and USD 1080/MT FOB India for 65-16 grade.
Moving ahead, the Silico Manganese prices are expected to remain stable with likeliness to move upwards on high raw material cost coupled with constant demand amid a free-falling Rupee.
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