The prices of silico-manganese have corrected marginally recording a decrease of INR 1,000 in both the regions of Durgapur and Raipur setting it to INR 60,000/MT and 61,000/MT respectively. The demand for Silico Manganese plummeted hugely post demonetization leading to a plunge in its sales volume.
The producers of Silico Manganese are facing a huge challenge amid severe liquidity crunch due to the demonetization of the currency leading them to reduce production substantially or shutdown their operations temporarily, as market conditions are unfavourable with no signs of improvement in the horizon.
Furthermore, the Government of India (GoI), with effect from 25 Nov’16, has imposed Anti-Dumping Duty on imports of Met Coke from China and Australia at the rate of USD 25.20/MT and USD 16.29/MT respectively for a five year period.
Met Coke is required in the production of Ferro Alloys and this imposition of duty will further increase their Cost of Production – which had already shot up due to the high raw material (Manganese Ore) cost.
The rise in production cost coupled with the very poor demand for Silico Manganese in the market, has made it almost unviable for Silico Manganese producers to operate at present.
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