The price of Silico Manganese in India is unlikely to rise in the near future – despite some reports of buying interest from mills that are low on inventory, as steel fundamentals have yet to show any signs of recovery. Most Silico Manganese producers have opted to cut production levels in sight of poor demand from steel mills. A Silico Manganese producer based in Raipur remarked on the current market scenario, “Silico Manganese prices are depressed by the persistent problem of output overcapacity in India, and demand has failed to match the supply.†Another producer source revealed that, the number of inquiries from steel mills was fast declining – as trade activities vastly reduce during the monsoon season. Silico Manganese 60-14 is currently being offered at around Rs. 50,000 – 51,000 /MT (Ex-Raipur) and Rs. 51,000 – 51,500 /MT (Ex-Durgapur).
Ferro Alloy plants based in the state of Chattisgarh fret with the added cost pressure likely to be exerted on them, as the State Electricity Board plans to hike electricity charges. Although no announcements have been made yet, a statement is expected in the month of July. SteelMint learned from sources that the current electricity charges are at Rs. 4.70 per unit and it is likely to be revised to Rs. 5.25 per unit. This development will give Ferro Alloy producers with captive power a substantial advantage in terms of pricing.
At 58.03, the Indian Rupee touched an all-time low, depreciating nearly 8% against the US Dollar (USD) in last the one-and-half months. Buoyed by the depreciating Rupee against the Dollar, the Indian players have decided to cut their offers to consummate trade, as a stronger dollar boosts the sales in rupee terms. Silico Manganese 65-16 is currently being offered at $ 1010 /MT FOB East-coast India. It is to be seen whether this latest development results in an increase in demand from foreign buyers.
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