Sell-side players remained firm on offer levels, but have met with limited buying interest at these levels. Silico Manganese prices unchanged from last week as buyers and sellers reported limited activity and a resistance from sellers to lower prices
Silico Manganese price remain calm and stable this week. The market was described to be neutral with no significant upside or downside forces to move it either way. Market sentiment in India remained unoptimistic, with most seeing little chance of any upswing in prices. Whereas, some agreed that there could a further dip in prices in the near-term, however, nobody expected a plunge in prices. Domestic demand for Silico manganese remains to be stable. Silico Manganese 60-14 is being offered at INR 52,500 /MT (Ex-Raipur) and INR 53,500-54,000 /MT (Ex-Durgapur). Prakash industries are offering Silico Manganese at INR 50,500 /MT (Ex-Champa, Chhattisgarh). In Durgapur, most Silico Manganese producers have opted to cut production levels in sight of poor demand from steel mills as most producers are out of town during the week long Durga Puja celebrations in the State of West Bengal. TATA's branded Silico Manganese 60-15 Silicomag is currently not being offered in the market but Silico Manganese 50-12 is being offered at INR 43,000.
Indian SiMn Prices
Earlier, State-owned and India's largest manganese ore producer, Manganese Ore India Ltd (MOIL) hiked prices by 5-10% across its all product offerings for October-December (Quarter-3) owing to low imports and low availability of ore in domestic market. This is expected to further impacts margins of Silico Manganese producers, and also keep a check on prices from correcting.
In the export market, Indian producers have increased the price for Silico manganese with the recent appreciation of the Rupee. Silico Manganese 60-14 being offered at $ 880-890 /MT FOB East-coast India and Silico Manganese 65-16 is being offered at USD 990-1000 /MT FOB East-coast India. The prices for Silico Manganese are not yet acceptable in the market. Indian producers have decided to keep the price high due to volatility of the Indian Rupee. The producers are of the view that these prices will soon be agreeable in the future.
On the future outlook, some market participants are expecting lower offer prices in the coming month because of current stable and appear-to-be-appreciating Rupee against the Dollar, while some others see strong demand in the quarter (October-December) as the underlying factor and prices keeping range-bound.
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