India: Domestic silico manganese prices edge down on weak demand, competitive offers

• Competitive pressure, cautious buyer sentiment influence prices
  
  
• Downturn in steel prices weighs on silico manganese demand
  
  

Domestic silico manganese prices have continued their downtrend reaching a nearly one-month low amid panic selling and falling offers. This w-o-w decline highlighted the ongoing challenges in the market. Additionally, the festival season has put pressure on buyers to liquidate material, further weighing down prices.

According to BigMint's assessments on 29 October, 2024 prices for grade 60-14 silico manganese dropped significantly by INR 700-1,500/tonne (t) ($9-$18/t) w-o-w. Prices for this grade were assessed yesterday at INR 66,600-67,500/t ($786-$805/t) exw, with offers in Raipur ranging from INR 67,500-68,000/t ($802-$808/t) exw.

Confirmed deals (as per BigMint)

Key challenges in domestic market

Cautious buyer approach, competitive pricing: The domestic silico manganese market is currently experiencing downward pressure due to competitive pricing from Durgapur-based producers. Offers in the range of INR 66,000-66,500/t ($784-790/t) from Durgapur have influenced buying decisions in other key production hubs like Raipur and Vizag.

Some market participants have offered even lower prices, further intensifying the competition. However, major smelters in Raipur and Vizag are maintaining a relatively higher price range of INR 67,000-68,000/t ($796-$808/t).

Steel mills are cautiously adopting a need-based procurement approach amid anticipated price declines. Combined with lower trader offers and occasional distress selling, this has intensified downward price pressure.

The overall market sentiment remains cautious, with buyers adopting a wait-and-watch approach due to the prevailing competitive market dynamics.

Billet prices drop w-o-w: BigMint's steel billet index, a key benchmark in the domestic steel market, witnessed a significant decline of INR 500/t to INR 39,100/t ($465/t) exw-Raipur on 30 October. The downturn in the steel market is pressuring silico manganese prices. Reduced steel demand is leading to lower demand for ferroalloys like silico manganese.

Outlook

Domestic silico manganese market is projected to face downward pressure due to weak export demand, competition, and fluctuating imported ore prices. However, production cuts by smelters may offer some price support.