Indian silicomanganese prices have further improved amidst the supply shortage in Raipur. Meanwhile, prices in Durgapur and Vishakhapatnam remain firm. Although the buyers are asking for lower prices, sellers are showing reluctance. The major Indian silicomanganese producers are booked out till mid-May, while the export shipments are being offered for June. However, most buyers are inclined towards procuring lower quantities as prices are higher for immediate deliveries.
Currently, silicomanganese prices are assessed at INR 89,500 – 90,000/t ex-plant Durgapur and INR 92,500/t ex-plant Raipur. Meanwhile, May deliveries are being offered at lower levels. Export prices remained stable at $1300/t FOB India for 65-16 grade and the export demand is dull for 60-14 grade.
Few Raipur based producers reported to SteelMint that many of their out-station buyers have procured from Durgapur at lower levels. However, this is not dampening the optimism of the major sellers as they have limited selling pressure.
Most of the major producers of silicomanganese are waiting for the SAIL reverse auction, which is expected to be concluded in the coming week. They believe that after the tender is concluded, there will be an added pressure on the silicomanganese smelters to fulfil SAIL orders along with the existing orders of silicomanganese.
“After the SAIL tender is concluded, the pressure of dispatches might intensify yet again, as at least 10,000-15,000 t of material will be out of the market in the next month.”, shared a silicomanganese producer with SteelMint.
However, there is also some scepticism creeping in among few participants as the export market has gone dull. After the Ukrainian supplies resumed there is a significant decline in the demand for Indian silicomanganese from Europe. Meanwhile, the South East Asian countries are also resisting accepting higher prices for June deliveries. Moreover, amidst the appreciating Rupee, exports are less viable for the Indian suppliers and the domestic market remains more attractive.
Outlook
Indian exporters are waiting for the fresh inquiries to come as they anticipate the market to pick up from next week. Meanwhile, in the domestic market, producers maintain optimism for the week and are firm on their prices.
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