Indian silico manganese prices have been edging down gradually for a couple of weeks now due to waning domestic demand. Currently, prices for the 60-14 grade are hovering at around INR 94,000-95,000/t exw for both Raipur and Durgapur.
According to SteelMint sources, most of the smaller steel units have reduced their production owing to higher prices of raw materials. Meanwhile, a few small steel mills also had to shut operations on account of low inquiries for steel offtake from the market.
Silico manganese producers are now resisting a further reduction in their prices as most of them remain booked for the month. Exporters are offering Oct-Nov’21 shipments, but buyers are refraining from taking position ahead of time.
Meanwhile, some silico manganese producers from Durgapur shifted to ferro manganese owing to better demand as per market sources. Currently, SteelMint’s assessed silico manganese prices for 65-16 are at around $1,430-1,440/t FoB India. However, some producers are offering higher prices as they remain sold out for the month.
Many Chinese smelters had to cut their production by up to 40% as the Power Dispatches Center of Inner Mongolia reduced power consumption in the region in the previous week for five days which further triggered the rise in silico manganese prices in the Chinese spot market due to supply shortage.
Higher grade manganese ore prices are unchanged w-o-w amidst lower demand from China. Imported manganese ore prices remain on the higher side amidst higher freight costs, which are supporting the silico manganese prices. Meanwhile Indian smelters are waiting for MOIL to release its manganese ore prices for next month. There is an increased expectation that the prices might remain unchanged, further putting pressure on the down-trending silico manganese market.
Outlook
Silico manganese prices might fall further on limited support from the domestic market. However, silico manganese producers are speculating that prices may rebound after steel production returns to normalcy.
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