Indian silicomanganese prices have been on an uptick since mid-Nov ‘20 amidst hike in demand from the exports market and increasing steel prices. This week, the prices in Durgapur and Raipur both remained stable owing to slow buying tendencies in the domestic market. Since export demands were fulfilled before the New Year holidays there has been a demand lag in the exports front as well.
Current assessments in Durgapur are at INR 70,000-70,500/t Ex-plant, while prices in Raipur are at INR 69,000-69,500/t Ex-works. However, SteelMint learns from its sources that few deals were also concluded at around INR 71,000/t Ex-works in Durgapur for merchant exports.
Meanwhile, export market has also accepted the higher prices therefore the sentiments of domestic prices softening at the portside regions are limited. The offers in the export market are at $1,070/t FOB for 65-16 grade. Meanwhile, deals were concluded at $995/t for 60-14 grade and for 65-16 grade the deals are at $ 1,040-1,050/t FOB India. Although demand from Europe and Turkey is still lagging, Japan remained an active buyer of 65-16 grade silicomanganese in the recent weeks.
Outlook:
The demand in the domestic market is yet to pick up and the producers are in a wait-and-watch mode. As the major producers would now be catering to the demand of SAIL and RINL, whose tenders were recently concluded at quite healthy prices, there are chances that market might soon see a tight supply and domestic prices might find support at slightly higher levels.
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