Indian Silico Manganese producers raised their offers in line with rising raw material cost.
Silico Manganese market has been under constant pressure as activity remained dull, but a rebounding demand from Europe coupled with a rise in Manganese ore price has lent support to the same.
“High ore prices have restricted those few sellers who have been offering at lower levels to entice buyers,” said a source while being confident on the acceptance to higher offers of the commodity.
Demand in the domestic market has been moderate but constant and sellers have been witnessing continuous inquiry. Quarterly purchase tender from SAIL also has filled the producers with confidence.
Moreover, there has been an anticipation in the market that MOIL is likely to revise its prices upwards on the backdrop of rising international Manganese ore prices, which is another reason for such a hike in Silico Manganese offers.
SteelMint assessed Silico Manganese offers at INR 69,500/MT (Ex-Durgapur) and INR 69,000/MT (Ex-Raipur).
South African carbonate ore has observed a steep rise in its prices as Rand has appreciated significantly against USD. Moreover, a supply crunch has also been a visible factor in the region along with robust buying from the Chinese.
Overseas demand has been a major issue for the commodity, which is seemingly improved as European demand is coming back, while demand from a few Asian and Gulf countries has been unaltered.
Producers are much more bullish as Europe has started floating its inquiries and are expecting a further rise in the commodity’s prices.
Export offers are assessed at USD 1,070/MT FOB India for 60-14 grade and USD 1,180/MT FOB India for 65-16 grade. However, producers are of the view that export offers may escalate further when Europe begins its full-fledged buying.
On the future outlook, Silico Manganese offers are expected to edge up in near future and any downward correction in its prices are non-existent.
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