India’s domestic Silico Manganese prices rise over devalued currency

Indian domestic Silico Manganese prices rise over falling Indian Rupee and lower stock levels .

Indian producers of Silico Manganese have raised offers in the domestic market owing to the weakened Rupee (Indian Rupee fell to a twenty month low of 64/USD); making exports a more lucrative option for the manufacturers.

SteelMint learned from market sources that with greater price parity in overseas trade, Indian producers of Silico Manganese are gearing to produce higher grade material (65-16) focussing their efforts on exports, meanwhile creating a shortage of lower grade material (60-14) in the domestic market. Tighter availability on account of low production and shortage of supply has lent support to the increase in domestic prices of Silico Manganese. Few big producers are also committed in fulfilling bulk contracts, and don’t much material to sell in the open market. Silico Manganese 60-14 is currently being offered at around INR 47,500/MT (Ex-Raipur) and at INR 48,000/MT (Ex-Durgapur).

At 64, the Indian Rupee (INR) touched a twenty month low against the US Dollar (USD). Indian players are firm on export offers, although demand from foreign buyers for Indian origin Silico Manganese is still very low at these prices. Buoyed by the depreciating Rupee against the Dollar, the Indian players might decided to cut their offers to garner greater buying interest. Silico Manganese 60-14 is being offered at USD 730/MT FOB East-coast India, and Silico Manganese 65-16 is being offered at USD 820/MT FOB East-coast India.

On the future trend, most market participants believe there is a possibility of a further price-rise in the domestic market.

[su_note note_color=”#c2d6e9″ text_color=”#0b0a0a”]A senior executive from one of the biggest Ferro Alloy producers in India commented on the Silico Manganese market scenario, “The Indian Manganese Alloys producers were reportedly cutting down on their production and were trying to exhaust existing stocks so as to maintain cash flows amid thin price margin. However, the cutting down of production of Manganese Alloys has created a shortage of supply in the market and prices may increase further in a short period.[/su_note]