Trading activity for silico manganese remained thin with prevailing weak demand, but offer prices in Raipur have gone up.
The price of silico manganese has increased marginally in Raipur, although demand continued to remain weak. Prakash Industries have opted to increase their offers levels, which has prompted other producers from the region to follow suit. SteelMint assessed grade 60/14 is offered at INR 49,500/MT (Ex-Raipur). Prakash Industries is offering silico manganese at INR 48,500/MT.
However, the silico manganese market witnessed a sharp fall in prices in Durgapur. Reportedly production of Silico Manganese in the market had increased and so prices are correcting now with fading demand. Earlier, silico manganese market was very active and so quite a few producers had opted to channel their production towards producing silico manganese. Silico manganese grade 60/14 is offered at INR 48,000/MT (Ex-Durgapur).
A Durgapur based producer remarked, “An overhang of supply in the market with already weak steel demand has caused pricing opinion to turn bearish.”
SteelMint assessed end-user demand for silico manganese will continue to be capped as supply of the material is far more than the current demand.
Silico Manganese Export Offers Down on Sell-Side Pressure
Overseas demand for silico manganese is also really low, and Indian producers have had to reduce offer levels to generate greater buying interest, as sellers from India are getting increasingly aggressive to conclude deals.
A producer source from Kolkata remarked, “Silico Manganese prices are not being much accepted in the export market and trading has really been difficult. A few offers are floating but demand is very low from foreign buyers”.
Silico manganese 60-14 is being offered at around USD 740/MT FOB East-coast India, and silico manganese 65-16 is being offered at USD 820 /MT FOB East-coast India.
Market sentiment remained unoptimistic, with most seeing little chance of any upswing in prices. Whereas, some agreed that there could be a further dip in prices in the near-term.
Exchange Rate : USD 1 = INR 66.6
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