India: Oversupply is driving the Silico Manganese Market; buyers dominating

The prices of Silico Manganese has been under significant pressure since Aug'19. Prices have been aggressively falling down and the producers were unable to hold the prices as the oversupply situation was driving the market and the producers wanted to clear their overstocked inventories. However, the market sentiments still remain the same for the Raipur region. Meanwhile, in Durgapur, producers were able to hold the situation as there were many production cuts and the oversupply situation was checked.

The export market also looks sluggish, but the producers are positive that the market may start picking up from here as the market opened after holidays in both India and China. In the export market, producers are offering 60-14 grade at USD 810-820/MT and 65-16 is being offered at USD 920/MT FOB India. Although, a few deals were heard to be undercut to USD 910/MT. In the domestic market, the prices in the Durgapur area remained firmed at INR 58,500-59,000/MT. meanwhile, in Raipur, prices fell further and currently is in the range of INR57,500-58,000/MT Ex-plant. Prices have been falling all the way now, almost approaching the cost line and entering the loss state in some regions.

On the future outlook, the fall in prices may seem to halt for some time, and any rise in price still indeterminate