Activity remains muted in the silico manganese market as sources reported of poor demand, and outlook for steel continues to be bearish.
On weak-end user demand silico manganese prices continue to remain under pressure. Current offers for grade 60/14 are INR 45,000/MT for both of the major silico manganese producing regions, Raipur and Durgapur. Prakash Industries is currently trading grade 60/14 at INR 44,000/MT, although they do not have much material to offer at present. SteelMint learned that there is chatter in the market that prices, can reach to a level of INR 44,000/MT, within this week. Looking at the market condition, the general perception is that producers will be forced to reduce productions and few plant shut-downs can’t be ruled out either.
“In a nutshell, there is nothing going on now. The Finish steel market is not performing well; I’m not expecting a rebound in the silico manganese market,” stated a producer from Raipur
Silico Manganese Export Market Flat, Outlook ‘Downbeat’
Owing to weak demand from international buyers, silico manganese prices in the export market continue to remain flat. Current offers for grade 60/14 is USD 680/MT FOB India and 65/16 is USD 750/MT FOB India. Indian producers stated there are no new deals being concluded in the market although there are inquires from South-East Asia and Middle-East countries.
A Kolkata based producer remarked, “The overall global steel market is performing badly for which export market is dull.”
On the other hand, demand from Europe is presently low as there is over-supply in the European market. European traders are sitting on huge inventories, having purchased decent quantities from India in anticipation of the provisional anti-dumping measures on imports of silico-manganese from India. Indian silico-manganese exports to the EU have increased in recent months as exporters usually want to ship as much as they can in case there are provisional duties levied against their products. Hence, demand from Europe is not expected till they exhaust their existing stocks, or a favourable decision by the European Commission (which is due in March 2016).
SteelMint assessed that further erosion in prices is possible as demand is not picking up and the near-term outlook is bleak.
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