Export prices for silico manganese retreated sharply this week amid a dearth of buying interest from international buyers.
Indian producers have slashed prices drastically to garner buying interest in the export market. Buy and sell ideas remained fairly far apart, as buyers were waiting for offers to fall. Even after dropping the offers buy and sell side offers did not match. Market sources reported that overall global demand for silico manganese is very poor given the lackluster steel performance and low demand for the Alloy worldwide.
SteelMint assessed grade 60-14 is currently being offered at around USD 630/MT FoB East-coast India and 65-16 is being offered at around USD 690/MT FoB East-coast India. A buyer’s expectation for grade 65-16 is around USD 670/MT CIF Europe.
“There is no demand, and I have no inquiries this week. Bids are too low, Indian offers are too high for buyers. We do not expect the prices to fall further but market outlook is poor and many producers are held with stock. We are not sure but prices may fall again,” said a producer from Kolkata.
Market sources remained pessimistic about market fundamentals and outlook.
Domestic Silico Manganese Prices Drops; Market Outlook Bleak
Domestic silico manganese prices are down again this week. Sources said that market is under pressure on low end-user demand.
SteelMint assessed grade 60/14 is being offered at INR 40,500-41,000/MT (Ex-Raipur) and INR 41,500/MT (Ex-Durgapur). Prakash Industries is currently offering silico manganese at INR 39,500/MT (Ex-Champa).
A Raipur based producer stated, “When finished steel prices are so weak, it really cripples the ability of steelmakers to buy silico manganese, hence demand is so very weak. I expect prices to stay stable for this month.”
Market participants said a substantial recovery in price was unlikely as market is under pressure with high inventory and very poor demand.
| Silico Manganese Prices (Week 48: 23 Nov-29 Nov) | ||||||
|
Particular/Delivery
|
Size/Grade | Prices | Change | 1W | 2W | 1M |
| Ex-Durgapur | 60-14 | 41,500 | – 500 | 42,000 | 42,500 | 44,000 |
| Ex-Hyderabad | 60-14 | 42,500 | – 1,000 | 43,500 | 45,000 | 46,000 |
| Ex-Raipur | 60-14 | 40,750 | – 500 | 41,250 | 41,500 | 43,000 |
| FOB India | 60-14 | 630 | – 30 | 660 | 660 | 680 |
| FOB India | 65-15 | 680 | – 30 | 710 | 710 | 725 |
Source: SteelMint Research
Prices in INR/MNT
Exchange Rate: USD 1 =INR 66.3
Leave a Reply