Indian Silico manganese prices continued its fall this week as strong supply outweighed falling consumption.
Silico manganese price in India is unlikely to rise in the near future, given a weak steel market in India. Also, infrastructure projects in the country that are expected to boost demand are still in the planning stages and most furnaces in India are operating at 40% of capacity. Currently, 60/14 grade is being traded at around INR 53,000/MT (ex-Raipur) and INR 54,000-54,500/MT (ex-Durgapur).
Demand of Silico manganese (being an intermediate product) is linked with the steel market and until steel fundamentals show any sign of improvement, end-users’ demand for Silico manganese will continue to be capped.
“We are not so optimistic for this month as prices can fall further,” stated a producer from Raipur.
Export Market
The export market has also gone quiet as procurement appetite from end-users is weak with most still unwilling to commit amid year-end lull. Export offers for 60-14 grade are USD 860/MT FOB East Coast India and 65-16 is at USD 960/MT FOB East Coast India.
A trader from Raipur stated, “This is not the time to do business in the export market. It is the year-end, not a lot of business will happen till buyers return after Christmas holidays.”
SteelMint assessed that increased competition from Ukraine, Russia and China has forced Indian producers & traders to reduce prices.
“We are losing our Middle East market to Ukrainian sellers, so we need to go slower. The European market is not good, so Ukrainian material is penetrating into the Middle East,” said a producer from Kolkata.
Exchange Rate : USD 1 = INR 61.96
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