Indian Silico manganese prices have corrected owing to production cut by secondary steel manufacturers.
Domestic demand for Silico manganese is really low and the decline in prices is steeper than expected.
Market sources confirmed Silico manganese prices are declining in the major production areas of Raipur & Durgapur. Currently, 60/14 grade is being traded at around INR 56,500/MT ex-Raipur and INR 56,500/MT ex-Durgapur. According to sources, Prakash Industries is presently not offering Silico manganese in the market.
In the domestic market, prices have fallen as induction furnaces are running at a low capacity because of Iron ore & coal shortage and low conversion price from Sponge iron to Ingot. Also, Silico manganese producers were clamoring to offload stocks, fearing price correction could intensify.
A Raipur based producer opined, “Demand is sluggish in the domestic market as there is poor demand from steel mills. Most of induction furnaces have cut down their production as conversion cost has fallen to INR 7,200-7,500/MT, which ideally should be INR 9,000/MT.”
Export Market
Overseas demand for Indian origin Silico manganese is low, with few spot deals concluded in the past month. Export offers for 60-14 grade are standstill at USD 920 FOB East Coast India and 65-16 is at USD 1,010/MT FOB East Coast India. Sources reported of poor demand from Middle East and European countries.
“Demand for Silico manganese is falling on all fronts, both foreign and domestic,” said a producer source in Durgapur.
Market sentiment in India remained unoptimistic, with most seeing little chance of any upswing in prices. Whereas, some agreed that there could be a further price correction in near-term, and plant shutdown (till market conditions improve) can’t be ruled out either.
Exchange Rate: USD 1 = INR 61.4
Leave a Reply