Silico Manganese prices fell with demand dented as buyers were retreating due to diminishing steel margins.
Silico Manganese 60-14 is currently being offered in the range of INR 42,500 – 43,000 /MT (Ex-Durgapur) and at around INR 43,000 /MT (Ex-Raipur). According to sources, Prakash Industries is also offering Silico Manganese at INR 43,000 /MT (Ex-Champa, Chhattisgarh). Silico Manganese producers were clamouring to offload stocks, due to rising inventory. 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 stocks to maintain cash flows amid thin margins.
In the export market, overseas demand for Silico Manganese is also very low. “Demand for Silico Manganese is in a state of limbo, on all fronts, both foreign and 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 640 /MT FOB East-coast India, and Silico Manganese 65-16 is being offered at USD 685 /MT FOB East-coast India. Despite the offer levels falling in recent days, they were still not welcomed by buy-side participants.
On the future trend, most market participants believe there is a possibility of a further price-cut because of weak demand for Finish Steel, and chances of plant shutdowns can’t be excluded either.
MOIL cuts manganese ore prices by 10-15% for Q2
Manganese Ore India (MOIL) the country’s largest manganese ore producer, earlier in the month cut prices of various grades of manganese ore by 10-15% for the Quarter Jul-Sep’16.
The prices of all ferro grades of ore have been decreased by 10%, silico grade prices have been decreased by 15%, while the prices of manganese ore fines have been decreased by 15%, from previous quarter’s prices.
SteelMint assessed that MOIL reducing its prices for Manganese Ore, will provide Manganese Alloy producers an opportunity to adjust (lower) prices to garner greater buying interest.
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