Silico manganese prices were steady over the week, after weeks of gains. Producers and buyers are agreeable on price levels.
SteelMint assessed the domestic prices for silico manganese grade 60/14 is INR 56,000/MT (Ex-Durgapur) and INR 58,000/MT (Ex-Raipur).
Prices of Silico Manganese remained unchanged in the domestic market as there was relatively stable demand with tight supply. Prices are likely to remain at this level due to financial year-end and as most producers are waiting for the next quarter MOIL manganese ores prices, and market participants feel MOIL is likely to increase prices by over 25% for the next quarter, looking at the imported manganese ore prices.
Steel mills have asked for much smaller volumes after the sudden price rise and Silico Manganese producers are still waiting for the recovery in demand, even though prices have risen sharply.
Export Market
Since 2008, India has been the world’s largest exporter of Silico Manganese, ahead of Ukraine, and, in the past 5-6 years, an increasing proportion of Silico Manganese production has been exported. A rising share of India exports of Silico Manganese has been shipped to Europe. However, at present Indian producers face strong competition from Ukraine, Norway and South Africa. These countries are offering at much lower prices in the international markets after substantial depreciation in their currencies.
SteelMint assessed that grade 60-14 is being offered at around USD 840/MT FOB East-coast India, and grade 65-16 is being offered at around USD 950/MT FOB East-coast India. But, no deals have been done at these levels as prices in the international markets for Silico Manganese is much lower.
Indian producers feel that the information about the Indian Silico Manganese prices has now reached the producers from South Africa and Ukraine, and they could increase their offers in the coming week. Also, some Indian producers feel that they would need to offer at much lower levels if they need to conclude deals.
Exchange Rate: USD 1 = INR 66.5
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