Silico manganese prices receded down this week as buying activity was limited along with increased supplies.
Supply glut led to trade levels softening. SteelMint assessed the price for silico manganese 60/14 at INR 52,000/MT (Ex-Durgapur) and INR 53,000/MT (Ex-Raipur). Prakash Industries is offering at INR 51,000/MT (Ex-Champa).
Demand started to taper as mills were spooked by the earlier uptick, which they thought was too steep and not justified by market fundamentals. “The recent price hike in silico manganese was led by rising Ore prices and stronger steel prices. But increase in production levels are having an adverse impact on Silico Manganese prices,” said a producer from Raipur.
Market watchers see the domestic Silico Manganese price to be under pressure in the near-term and Silico Manganese producers would be hoping for the export sales to pick up so that some of the selling pressure can be eased.
Silico Manganese Export Buying Interest at Lows
Overseas demand for Silico Manganese is also really low and despite the reduced offer levels, prices were still not welcomed by buy-side participants.
SteelMint learnt from sources that grade 60-14 is being offered at USD 810/MT FOB East-coast India, and grade 65-16 is being offered at USD 860/MT FOB East-coast India. Despite lowering the offer level, price expectations were not matching between buyers and sellers. Buyers are looking for offers at around USD 775-785/MT FOB East-coast India for 60-14 grade. Sources reported of poor demand from European countries and said that inquirers are also low.
A producer source from Kolkata remarked, “Silico Manganese prices are not getting much acceptance in the export market and trading has really been difficult but, we are hoping that the market will improve in the coming 10-15 days.”
SteelMint assessed that the downward pressure on prices is expected to continue in the short-term.
Exchange Rate: USD 1 = INR 66.5
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