India: Silico manganese domestic prices remain range-bound in recent deals

India's domestic silico manganese prices held firm w-o-w, despite a downturn in domestic steel demand, causing a decrease in the use of silico manganese. Meanwhile, the market stability this week was largely supported by the consistent costs of imported raw materials like manganese ore and coking coal, which experienced weekly fluctuations but have remained virtually constant w-o-w.

According to SteelMint's assessment, silico manganese prices in Raipur were at INR 64,600/t exw, down by INR 100/t w-o-w. Meanwhile, prices in Vizag were at INR 65,300/t exw, up INR 400/t. In Durgapur, producers' offers increased by INR 700/t to INR 65,000/t exw.

This week, SteelMint recorded trade volumes of around 8,500 t of manganese alloys in the domestic market, down 1,500 t from last week.

Market highlights

• Upholding a strong bidding price: The market bids are in line with the prevailing sentiment to maintain prices at or near 65,000-66,000/t (grade 60-14), and they were unwilling to cut prices domestically. In order to reduce the risk of uncertainty, the major producing region has reduced production by 20-30% from their current output capacity; as a result, prices stayed stable.
  Furthermore, some of them, particularly in Vizag and Raipur, have no plans to reopen their plants as the market is cautious at the moment.
  
  
• Imported manganese ores are down a bit: The prices of all grades of imported manganese ore fell by $0.06/dmtu (1.5%) w-o-w and remained relatively low from the previous week. This reduction has been attributed to a decline in global steel consumption as well as an unbalanced marketplace in the major manganese-producing countries. However, a small decline in the price of imported ore has allowed silico manganese manufacturers to keep their offers in place. Grade Mn 46% (lumps, Australian-origin) costs $4.6/dmtu CNF Vizag, India, according to SteelMint.
  
  
• Decreasing steel prices: Domestic steel demand was modest last week, with no bulk booking queries, allowing silico manganese prices to hold close to their previous levels. SteelMint's steel billet index was INR 39,600/t ex-Raipur on 27 December, 2023, down INR 500/t from the previous week.
  
  

Outlook

The market is expected to stay stagnant in the short term due to low supply. It is crucial to monitor steel mill demand, market inventory, and manganese ore pricing. Higher manufacturing costs and narrow profit margins at current pricing are unlikely to drive down prices in the near future.