Silico Manganese prices fell for the fourth straight week with demand dented as buyers were retreating due to diminishing steel margins. Silico Manganese 60-14 is currently being offered at around INR 69,500 – 70,000 /MT (Ex-Raipur) and INR at around INR 71,000 /MT (Ex-Durgapur). Silico Manganese producers were clamouring to offload stocks, fearing the price declines could intensify. “Each time we think the price is low enough it manages to slide below that level,” remarked a Silico Manganese producer. 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 or negative margins.
Overseas demand for Silico Manganese is also really low and the decline in price is steeper and faster than expected. “Demand for Silico Manganese is declining on all fronts, both foreign and domestic,” said a producer source in Durgapur. Silico Manganese 60-14 is currently being offered at USD 945 /MT FOB East-coast India, and Silico Manganese 65-16 at USD 1055 /MT FOB East-coast India.
The short-term expectation is for prices to remain under pressure and further downward price movements is still possible, on the back of low overseas demand for Indian Silico Manganese.
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