- Strengthening domestic demand drives silico manganese prices
- Billet price hike fuels silico manganese demand in India
Silico manganese prices in the Indian domestic market have exhibited a significant upward movement this week, reaching a 10-11 month high. This notable price increase has surpassed levels observed in June 2023, which hovered at around INR 72,500/t exw Raipur.
The price surge was evident across grades. Grade 60-14 witnessed a w-o-w increase of INR 2,200-2,400/t ($22-40/t), settling at INR 70,500-72,500/t exw ($842-866/t) in key production regions. The premium grade (60-15) reached INR 73,000-74,500/t ($872-890/t) exw in Durgapur and Raipur, as per BigMint’s assessment on 17 April, 2024. Increased offtake by domestic steel mills is providing a solid foundation for the price rise and a surge in inquiries from overseas markets for Indian silico manganese is further bolstering domestic prices.
Factors boosting domestic price
Strengthening domestic mills demand: The Indian silico manganese market is experiencing a period of price buoyancy fuelled by rising demand from domestic steel mills. This uptick in steel mill offtake suggested a potential increase in domestic steel production activity. Consequently, demand for silico manganese, a key alloying element in steelmaking, is on the rise.
This trend reflected in recent trade activity, with regional transactions for silico manganese hovering around INR 70,500-72,700/t ($840-868/t) for a total volume of approximately 4,800 t, up by 1,000 t from last week. These figures have highlighted the growing demand for silico manganese and its potential impact on market pricing.
Surge in billet prices w-o-w: BigMint’s billet price index accelerated by INR 1,600/t w-o-w to touch INR 44,300/t ($511/t) exw-Raipur on 15 April 2024. The index climbed to a 7-month high. Billet prices across regions increased by INR 1,600-2,100/t today, supported by trading activity in the semi-finished segment. This, in turn, fuelled prices of silico manganese, a key alloying element in steel production.
Indian silico manganese exports price rise w-o-w: Indian silico manganese exports were experiencing a positive trajectory, driven by rising raw material prices and burgeoning overseas demand. BigMint’s assessments on 16 April, 2024, revealed a significant w-o-w increase in export prices, with the 60-14 grade climbing to $849/t FOB (up $34/t) and the 65-16 grade reaching $943/t FOB (up $27/t).
Outlook
The current market scenario, characterised by robust domestic demand and rising export prospects, is likely to continue exerting upward pressure on silico manganese prices in the near term. However, for a more comprehensive understanding of the future price trajectory, close monitoring of the assessment of domestic steel production trends and their impact on ongoing silico manganese demand from steel mills have to be kept in mind.
BigMint suggests, monitoring developments in the global silico manganese market, particularly with respect to supply chain constraints and potential price fluctuations in the international arena which will provide clear price trends in the near term.