India: Silco manganese prices increase on rising steel prices

Indian silico manganese offers have increased post-Diwali holidays and the producers are firm with their prices.

In the past few days, Iron ore and pellet prices have increased, causing the steel prices to rise. This has, however, provided leverage to the Indian silico manganese producers to increase their offer levels. Meanwhile, in Durgapur, this upward sentiment is also backed by the material shortage of silico manganese.

In the exports market, prices have corrected due to current depreciation of Indian Rupee, which has created room for negotiations for the silico manganese producers. Meanwhile, the demand for 60-14 grade has slightly improved, though the prices have marginally shifted as the realization in Indian rupee is same as earlier.

Price Assessments:
Currently, prices in Raipur are assessed at INR 59,500-60,000/t, with most deals concluded at around INR 59,500/t. Meanwhile, prices in Durgapur are at around INR 60,000/t, and many producers have revised their offers by late evening to INR 60,500/t. However, no deals have happened at INR 60,500/t yet. In the exports market, the price of silico manganese 60-14 is at around $800/t, but a few deals were recorded at $790/t, and 65-16 is at around $850/t fob India.

Outlook:
Prices of silico manganese in the domestic market is expected to remain stable. The producers with low inventory are going to keep their offers firm, since liquidity is not much of a problem for the producers at present, they are in strong position to hold the prices. Simultaneously, in the exports market, the prices are expected to remain stable. However, further depreciation in the Indian currency might bring down the prices further.