Indian producers of Silico Manganese have been forced to cut their offers in hope of gnerating greater buying interest for the commodity.
Silico Manganese prices fell with demand dented as buyers were retreating due to diminishing steel margins. Silico Manganese 60-14 is currently being offered in the range of INR 69,000 /MT (for both Ex-Raipur and Durgapur). Silico Manganese producers were clamouring to offload stocks, fearing the price declines could intensify. Traders were also reluctant to buy despite seemingly low prices for Silico Manganese. “Nobody wants to buy now and be stuck with it, while the market keeps tanking,” mentioned a trader based in Raipur. SteelMint assessed that the Indian Steel mills were reportedly cutting down on their Silico Manganese inventory.
In the export market, overseas demand for Silico Manganese is also very low. “Demand for Silico Manganese is declining on all fronts, both foreign and domestic,” said a producer source from Durgapur. In the export market, Indian producers have sharply dropped offer levels as demand from foreign buyers has been very soft. Silico Manganese 60-14 is being offered at around USD 935 /MT FOB East-coast India, and Silico Manganese 65-16 is being offered at USD 1035 /MT FOB East-coast India. Despite the offer levels falling in recent days, they were still not welcomed by buy-side participants, as buyers are negotiating for even lower price levels.
On the future trend, most market participants believe there is a possibility of a further price-cut because of weak demand for Finish Steel, and chances of plant shutdowns can’t be excluded either.
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