Imported manganese ore prices reduced slightly last week due to weak buying from China putting a halt on the continuously rising prices of silicomanganese. However, due to the severe supply shortage of silicomanganese in the market, the prices are largely stable and maintaining the same levels as towards the end of last week.
Although the higher prices have found acceptance in the domestic market, buyers are not booking large quantities. Silicomanganese producers expect that prices might increase further as most of them remain oversold and many are not offering in the spot market till May.
Current prices are at around INR 88,000-88,500/t both in Raipur and Durgapur. Meanwhile, many producers are also offering INR 89,000/t in Durgapur and INR 90,000/t in Raipur. However, no deals were heard to be concluded at these levels.
Meanwhile, many exporters have started to offer June shipments but there is some resistance from the buyers from taking positions so far ahead. Most of the exporters are sold-out for May and thus hold a very optimistic outlook. In exports, offers are at $1,200/t for 60-14 grade and $1,350/t for 65-16 grade FOB levels. Meanwhile, the last deals were concluded at around $1280/t for 65-16 grade.
Outlook:
Prices of silicomanganese are expected to remain firm with limited chances of a marginal correction. However, producers remain tight with supplies and therefore are holding a stronger hand in negotiations.
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