Silico Manganese prices fell with demand dented as buyers were retreating owing to diminishing steel margins.
Silico Manganese 60-14 is currently being offered in the range of INR 57,500-58,000/MT Ex-Raipur and at around INR 58,500/MT Ex-Durgapur. According to sources, Prakash Industries is offering Silico Manganese at INR 56,500 /MT (Ex-Champa, Chhattisgarh). Silico Manganese producers were clamoring to offload stock, fearing the price decline could intensify. Traders were also reluctant to buy despite seemingly low prices for Silico Manganese.
“Nobody wants to buy now and be stuck with it, while the market keeps tanking,” mentioned a trader based in Raipur.
SteelMint assessed that the Indian Steel mills were reportedly cutting down on their Manganese Alloy stock to maintain cash flows amid thin margins. Silico Manganese 60-14 offers for Raigarh, Jharsugda & Hindupur stand at INR 57,000/MT, INR 56,500/MT and INR 60,000/MT respectively.
In the export market, overseas demand for Silico Manganese is also very low as Europe & Middle East are on holiday.
“Demand for Silico Manganese is declining on all fronts, both foreign & domestic,” said a producer source from Durgapur.
In the export market, Indian producers have maintained offer levels as demand from foreign buyers has been very soft. Silico Manganese 60-14 is being offered at USD 940 /MT FOB East Coast India, and grade 65-16 is at USD 1050 /MT FOB East Coast India. Despite the offer levels falling in recent days, they were still not welcomed by buy-side participants.
On the outlook, most market participants believe there is a possibility of a further price cut because of weak demand for finished steel, and chances of plant shutdowns can’t be excluded either.
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