India: Silico manganese market sees better inquiries; prices stable

Indian silico manganese prices, which gained momentum in the initial weeks of the month, are now stable as buyers are showing resistance to the higher offers. Few producers who are solely dependent on the domestic market, had reduced their prices, but are now firm with their offers in line with the bullish sentiments in the market.

SteelMint assessed the current market price of silico manganese 60-14 grade at INR 96,100/t exw-Raipur and INR 95,100/t exw-Durgapur.

Better inquiries from domestic markets
One Raipur-based silico manganese smelter reported that there are ample inquiries in the domestic market, yet traders are refraining from booking large quantities as they are anticipating that prices may fall further. However, producers are less interested in reducing their prices as raw material costs are going up.

Export demand subdued
Exports remain sluggish due to container unavailability. Seaborne buyers, who already booked the material, are having to squeeze their profit margins due to higher freight costs. Although most producers and major merchant exporters remain booked, the container issue is delaying some shipments. Silico manganese price for the 65-16 grade is down by $10/t w-o-w to $1,420/t FoB India.

Imported manganese ore prices down
Seaborne manganese ore prices are in downtrend despite higher freight costs. This decrease can be attributed to adequate quantities of manganese ore at the Chinese ports, which are pressuring the miners to keep the prices on the lower side.

Exporters irked at withdrawal of export benefits
Indian suppliers were waiting for the unveiling of the rates and guidelines of the Remission of Duties and Taxes on Export Products (RoDTEP) incentives scheme, India's biggest, and realistically, only export promotion scheme, which was drafted to replace the previously existing Merchandise Exports from India Scheme (MEIS) on 1 Jan'21. It had remained inactive due to the unavailability of rates. RoDTEP has been finally notified on 17 Aug'21. Earlier, there was a 2% remittance on ferro alloys exports. However, the new rates released have omitted steel and ferro alloys from the list. This has created disappointment amongst smelters. As per sources, higher profits in the industry resulted in the withdrawal of the incentive.

Outlook
Silico manganese prices are expected to remain range-bound in the absence of strong driving factors. However, as producers have reported of increased inquiries, this may cause some stir in the market.