India: Silico manganese offers continue to head north on supply concerns

Indian silico manganese prices climbed up by around INR 1,300/t w-o-w due to a supply shortage in the domestic markets. Furthermore, an increase in export inquiries and a few bulk purchases concluded at higher prices for the 65-16 grade which helped domestic prices of the material to go up further. Domestic mills have also expressed an interest in stocking up amid rising prices in key steel-producing regions, fearing a shortage of spot inventory.

According to SteelMint's estimates, the price of silico manganese in Raipur was at INR 64,500/t exw, which rose INR 1,300/t w-o-w. Durgapur had a 1,750/t increase in prices on a weekly basis, reaching INR 64,000/t exw. Vizag's prices increased by INR 900/t as well, to INR 64,500/t.

"Some deals were also heard concluded at higher offers of over INR 65,000/t exw-Raipur for 60-14, earlier this week. However, due to the drop in sponge and billet prices today, bids in the domestic market remained slow," highlighted sources.

Factors influencing silico manganese prices

Sellers lift offers on improved export inquiries: Sellers' quotations were on the higher side in the domestic market, ranging from INR 64,500-65,000/t exw, Raipur, Vizag, and Durgapur, since a few deals were completed at these price levels. Furthermore, export inquiries were abundant in the port side, which influenced upwards local prices of silico manganese across both grades.

Improved bookings in both domestic and exports: Last week saw a substantial increase in trade volumes with roughly 9,200t (including both domestic and export deals) being recorded by SteelMint. This is higher against 4,700t recorded in the previous week.

Fluctuation in steel billet prices: Semi-finished steel prices fluctuated throughout the weekend. On 19 December, SteelMint's IF steel billet index was at INR 40,500/t, down INR 300/t w-o-w after rising from INR 40,900/t exw on 19 December.

Outlook

Given the supply deficit, it is projected that prices will rise slightly in the short term, although raw material prices, such as imported manganese ore and coke prices, may remain unaltered. In the short term, we must continue to monitor the market's increase in high-priced transactions as well as shifts in the supply-demand dynamics of silico manganese.