Silico manganese prices closed the week with further correction as sellers slashed offers in the face of diminishing demand from end-users.
For several reasons like reduction in Manganese ore prices -as announced by a major domestic producer – to unenthusiastic procurement interest by traders and low end-user demand, Indian Silico manganese prices have corrected. 60-14 grade is currently being offered at around INR 50,000-50,500 /MT (ex-Raipur) and INR 51,500-52,000 /MT (ex-Durgapur).
“We have to be prepared for further price correction when necessary if we still want to stay in the market, and Silico manganese prices could soon reach the level of INR 49,000/MT,” remarked a producer from Raipur.
Export Market
Overseas demand for Indian origin Silico manganese is low and market sources reported of largely lackluster demand scenario. Export offers for 60-14grade is standstill at USD 800/MT, FoB East Coast India and 65-16 grade is at USD 910/MT, FoB East Coast India.
A Kolkata based producer stated, “It’s a sideways market. A few offers are floating and demand very low from foreign buyers”.
Market sources agreed there was less momentum in the market with fewer inquiries received as there are more sellers than buyers in the market, which are preventing prices from holding firm.
RINL Tender
RINL, an Indian Steelmaker, has invited bids from indigenous suppliers for monthly purchase of 6,500 MT Silico manganese for a duration of 1-year, conforming grade Mn-63; Si-19, as per IS:1470-1990. For supply of 1st lot containing 13,000 MT, the bids will be accepted till 6 Feb, 2015 up to 10.30 hrs. Prices have to be quoted in tonnes on FoR VSP basis including applicable taxes, duties, levies and freight.
EU initiates Anti-Dumping Investigation
The European Union has initiated an anti-dumping proceeding concerning import of Silico-manganese originating in India. The commission said that it has received a complaint in November, 2014. The companies in EU complained that Silicomanganese from India is being dumped and thereby causing material injury to the union industry. The EC has invited companies and other stakeholders from the Indian side to participate in the investigations.
Europe accounts to about 25% of India’s Silico manganese exports. Hence, it could have a huge impact on the fortunes of the Silico manganese industry in India, as the industry is already plagued by the persistent problem of output overcapacity in the country.
Exchange Rate : USD 1 = INR 62.51
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