India: Domestic silico manganese prices edge down on lower bids
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- Consistency in overseas inquiries maintain stability in Indian silico manganese prices
- Fall in semi-finished steel prices weigh on domestic offers
Indian domestic silico manganese prices experienced a minor decline of INR 250/t ($3/t), despite continued demand from international markets. Furthermore, inquiries from Europe have halted completely, leading to a regional decrease in demand pressure. Some domestic smelters have strategically reduced furnace output to maintain profit margins and avoid oversupply within the domestic market. However, these developments are counterbalanced by significant inquiries from SE Asia are sustaining prices in the export market, impacting domestic prices indirectly.
This scenario suggests a nuanced market dynamic where regional fluctuations are offset by broader export demand, resulting in overall price stability with a slight downward adjustment.
According to BigMint's assessments, the price of silico manganese in Raipur touched INR 68,200/t exw ($822/t), stable, inched down by INR 100/t ($1/t) w-o-w. Durgapur saw weekly price inched down by INR 300/t ($4/t) exw, to INR 68,000/t exw ($820/t). Vizag's prices decline by INR 400/t ($5/t), to INR 68,000/t ($820/t).
"I believe that the prices would stay in this range only, as there is still stock unavailability in the domestic market due to production cuts and global inquiries, most of the traders are booked till march, trajectory of prices for domestic silico manganese awaits disclosure of new export prices which is to be released next week," said a Durgapur-based smelter.
Factors influencing silico manganese prices:
Disparities in demand and supply: The demand from the key producing regions of Raipur, Durgapur and Vishakhapatnam remained mediocre, as major players did need based buying so far which in-turn kept the prices sturdy. However, key players in the market still had a good demand. Ongoing production curtailment in key producing regions has also impacted the domestic prices for silico manganese.
The slight improvements in the steel sector may have an impact in prices but for now its seems that prices would stay range-bound.
Major players hesitant in accepting higher offers: Manufacturers from Raigarh and Odisha quoted their offers in the range of INR 66,000-67,000/t ($796-$808/t), this has maintained the price stability in the market. Few other traders offered lower prices which made the players hesitant in accepting higher quotes. Although, big players are accepting offers ranging in between INR 68,500-69,500/t ($826-$838/t). It is also being noticed that most of the players are completely booked till March 2024.
Further clarity in prices can be seen after the release of manganese ore prices for the export market on 23 February 2024.
Outlook
Silico manganese prices are projected to stay anchored in the near term. According to BigMint's market analysis, continual inquiries from the export market and lower offers from majority of the players will keep the prices to stay firm.
However, BigMint emphasizes careful tracking of steel demand and changes in manganese ore prices which will have an impact on domestic manganese alloys production volume.
