Indian Silico Manganese producers raise their offers on higher Manganese Ore prices and other input costs.
A recent revision of Manganese Ore prices by MOIL has triggered the prices towards an upward direction.
Demand for the commodity in the domestic market is observed to be moderate but producers seem unhappy as they expected more.
“Rise in Manganese Ore prices along with other inputs such as electricity charges and met coke have added severe cost pressure, restricting our margins,” said a producer source expressing concerns over rising raw material cost.
SteelMint assessed Silico Manganese prices at around INR 71,500-72,000/MT (Ex-Durgapur) and INR 71,000/MT (Ex-Raipur), however, few deals on urgent basis took place at marginally higher levels.
All hopes of Indian Silico Manganese producers rest on overseas demand, as they await inquiries from the same to pull prices higher and restore their margin levels.
Most of the producers anticipate a rise in demand from overseas while some claim to have concluded deals at satisfactory levels.
A source revealed to SteelMint that Chinese demand for Manganese Ore has been high, which in turn might push up Manganese Ore prices further. Therefore, a further rise in Manganese alloy prices is very much on the cards.
SteelMint assessed export offers of the commodity at USD 1,100/MT FOB India for 60-14 grade and USD 1,210/MT FOB India for 65-16 grade.
On the future outlook, market participants are of the view that Silico Manganese offers might move up further owing to rising Manganese ore prices coupled with an anticipated return of demand from the seaborne market.
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