Prices of silico manganese have trended downward in this week, in line with continuous low demand from end users.
Silico manganese prices continue to sink in the domestic market. Indian producers continued to bemoan the slow pace of steel consumption in a country hobbled by tight credit and slow approvals of infrastructure project.
In Durgapur, prices have come down by INR 1,000/MT from last week and currently grade 60/14 is being offered at INR 44,000/MT. Plants have been forced to shut down on account of very low demand. The Durgapur market will remain stagnant over the next few days as most mills will be closed for Durga Puja holidays.
In Vizag, silico manganese (60/14) is very being offered at INR 45,000/MT. Producers are offering at a low price and running at loss because demand in the export market has gone down considerably and are faced with destocking pressure.
Similarly, in Raipur prices have gone down drastically. Last week silico manganese was being offered at INR 45,000/MT which has fallen this week by INR 1,500/MT. Currently grade 60/14 is being offered at INR 43,500/MT (Ex-Raipur). Prakash Industries has shutdown their 5 furnaces and were offering silico manganese at INR 43,500/MT.
Producer’s sources reported to SteelMint that silico manganese market is drab as there is oversupply of material along with no demand from buyers. Also the finished steel market is down which is affecting the silico manganese market.
A producer from Raipur described end-user buying activity as very sluggish, and remarked, “Indian steel demand is depressed by poor demand from the country’s infrastructure and construction sectors. All this is affecting the silico manganese market for which prices are going down drastically and it’s unlikely to witness a sustained recovery in the near-term.”
Export Offers Unchanged on Denting Demand
Overseas demand for Silico Manganese is also really low and the manufacturers of Silico Manganese are weighed down by deteriorating external demand and destocking pressures.
Grade 60-14 is currently being offered at USD 680/MT FoB East-coast India and 65-15 is being offered at around USD 730-740/MT FoB East-coast India. In countries where there is no incentive on exports, grade 65/15 is being offered at around USD 740-750/MT FOB East Coast India.
“Nobody is interested in buying and it’s really hard to get any bids from buyers as the market is really down with poor demand. With the European buyers remaining out of the market, exports have really gone down,” stated a Kolkata based producer.
On the future outlook, market sources said they did not hold positive near-term views about the silico manganese market, as mill losses were too great. In addition increasing supply is also preventing real price recovery.
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