India: Silico-manganese market stabilizes on better realization for exports

Indian silico-manganese prices which were going through a free fall since the past few weeks have halted in the last week and is marginally gaining since the start of this week. Although the prices in the Raipur market remains stable, the Durgapur market has spiked by INR 500/t due to good exports sentiments. Producers in Raipur and Durgapur are now mostly inclined towards exports and the current depreciated INR currency is also giving them room for negotiation. However, with the improved sentiments from the export market, the manufacturers who were under tremendous selling pressure, have now heaved a sigh of relief.

The domestic market, however, remains dull and there are very few deals. Most of the producers, especially the port-based producers are inclined towards exports as they can conclude deals at around USD 815-820/t fob India either through merchant exporters or direct exports. In Raipur, the prices are at INR 59,500/t and Durgapur went up to INR 60,000-61,000/t, mostly INR 61,000/t and above is being concluded for export deals through merchant exporters.

South African Manganese Ore
Prices of Manganese ore fell slightly again in the last week, as the demand for high priced ores remains gloomy. The manganese ore price corrections were mainly due to low procuring sentiments from the Chinese market. The Chinese port inventory is declining and the stock with the producers is low, however, due to the weak silico-manganese market, the higher manganese ore prices are not being accepted. Major participants believe that the prices might fall further.

Outlook
The prices of silico-manganese are volatile right now, however, reduction in the prices are highly unlikely in the coming weeks.