Sell-side players remained firm on offer levels, anticipating a continued strengthening in steel markets, but have met with limited buying interest at these levels
The Steel market in India being so sentiment-driven nowadays, Silico Manganese producers will find it difficult to hold its offers as the market is witnessing a sharp dip in Semi Finish and Finish Steel prices, after the recent upsurge in prices purely on anticipation. It is shaking market confidence in steel fundamentals, and demand for Silico Manganese is weakening as a result, with buyers being cautious and waiting for prices to settle downwards.
Silico Manganese 60-14 is being offered in the range at Rs. 55,000 /MT (Ex-Raipur) and at Rs. 54,500 /MT (Ex-Durgapur). According to sources, Prakash Industries is offering Silico Manganese at Rs. 54,000 /MT (Ex-Champa, Chhattisgarh). A distributor reported to SteelMint that TATA's branded Silico Manganese 60-15 Silicomag is being offered at Rs. 53,500 /MT. However, no deals have been reported at these levels, as the tone of the market remains distinctly cautious and prices for Silico Manganese in India is expected to correct in the next 2-3 days, also depending on the Ingot prices which is the best indicator for Silico Manganese.
In the export market, Indian producers have raised offer levels in line with strengthening of the Rupee, and expectations of better demand as European buyers returned to the market. Silico Manganese 60-14 is being offered at $ 820-830 /MT FOB East-coast India, and Silico Manganese 65-16 is being offered at $ 930-940 /MT FOB East-coast India.
In India the Rupee volatility made for a challenging environment, because from a buyer's point of view whatever price is quoted is irrelevant the next day.
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