India: Silico Manganese Market Hit Down by Over Supply Again

Indian Silico Manganese prices escalated during the end of December and in the first week of January. Thus, producers started producing in full capacity to cater to the demand at lucrative prices. Moreover, due to the long down-trending Ferro Chrome market, few Chrome Alloys smelters from Durgapur region also shifted to Silico Manganese. This, however, had some counter effect on the market and the Steel market is now over flooded with Silico Manganese. This situation had much intense effect on Durgapur area than Raipur. Meanwhile, producers in Durgapur are also facing logistics issue as the transportation to North has been severely affected due to the breakage in the Karmanasha Bridge near Chandauli in Uttar Pradesh. A Durgapur based producer shared that the supply is much more than the requirement in the domestic market, as the export market is dull and most of the exports are now concentric to Vizag, the selling pressure is very high on the producers and they are lowering the prices to conclude deals.

Prices of Silico Manganese went down in Durgapur to INR 65,000-66,000/MT Ex-Durgapur and in Raipur, the prices fell to INR 66,500-67,000/MT. Although the demand remains tepid in Raipur, the producers are quite firm with their offers. The export market remains dull, and deals are scarce. Silico Manganese manufacturers are in a wait and watch mode on how the market turns out after Chinese holidays are over and the Chinese market opens.

On the future outlook, Silico Manganese prices still have room for correction amid oversupply.