Indian Silico Manganese export offers continued to fall following a softening domestic market. Sources agreed export offers were mainly driven by domestic prices as overseas demand has been weak.
Indian producers lowered export offers amid weak demand. The depreciation of the Rupee against the dollar has also aided the exporters in lowering the offer prices to generate greater buying interest. Export offers for grade 60-14 is at USD 860 FOB East Coast India and 65-16 is at USD 960 /MT FOB East Coast India. A deal was heard to be concluded to Japan at USD 980 /MT CIF Japan from Visakhapatnam for grade 65-16 material.
Sources said lack of inquiries was mainly adding to the pressure on prices.
“We have reduced our offers in the market but still failed to generate purchase orders,” stated a Kolkata based producer.
In the domestic market, negative sentiment has spread through and lower deals were concluded.
Currently, grade 60/14 is being traded at around INR 54,000- 54,500 (ex-Raipur) and INR 54,500 (ex-Durgapur).
“There’s really no price bottom that seems too low for the market these days,” stated a Raipur based producer. “Market sentiment isn’t improving at all and buyers will not purchase when the prices keep decreasing.”
General expectations among market participants are that prices could edge down even further if demand does not pick up.
There are two purchase tenders for Silico Manganese to be concluded in this month:
1) SAIL tender for purchase of 42,600 MT
2) MMTC tender for purchase of 500 MT
Exchange Rate : USD 1 = INR 62.1
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