India: Silico manganese prices climb as manganese ore import prices rise

The improvement in outlook for imported manganese ore prices has led to an increase in domestic silico manganese prices since last week.

As per SteelMint's assessment, Raipur-based producers offered at around INR 77,600/t exw, which increased by 2% w-o-w, while in Durgapur prices were at 77,500/t exw, up by 3% w-o-w.

Meanwhile, producers' quotes for grade 60-14 remained at around INR 77,000-79,000/t exw-Raipur. On the other hand, Durgapur producers were seen quoting at INR 77,000/t-78,000/t exw. However, traders offered at around INR 76,500-78,500/t exw in both Raipur and Durgapur amid improving demand.

During the week, SteelMint recorded trade volumes of around 3,500 tonnes (t) of manganese alloys in the domestic market.

Responding to overseas enquiries, exporters offered at around $970/t FOB for 60-14 grade, nearly stable from last week, while prices for the 65-16 grade were assessed at $1,065/t FOB, stable w-o-w amid rising export enquiries since last week, which led to the w-o-w rise in prices.

SteelMint recorded trade volumes of around 2,500 t in the export market amid improved demand.

Factors supporting prices

• Raw material prices rise: Imported manganese ore prices have shown an improvement on a weekly basis owing to improved market conditions both domestically and globally. Current prices of Australian-origin manganese ore lumps (Mn 46%) is assessed at $6.5/dmtun CNF Vizag, up 12% w-o-w.
  
  
• Rupee depreciation: The rupee's depreciation against the dollar has been around 2% w-o-w, which resulted in around $2/t increase in the FOB value for exporters, thereby supporting the increase in silico manganese prices. Currently, silico manganese is offered at around $1,065/t FOB Vizag/Haldia for 25-150 mm, HC 65-16 material.
  
  
• Inconsistent supply and demand: The spot market saw strong demand for Indian products. Furthermore, a few producers held back from raising offers because they expected prices to increase. Due to lack of material in the domestic market, silicon manganese costs have increased.
  
  
• Moderate domestic steel demand: Domestic steel demand remained moderate last week with limited enquiries and bookings, which kept prices on the higher side. SteelMint's daily steel billet index was assessed at INR 44,125 /tonne (t) (-INR 633/ t w-o-w) exw-Raipur on 7 February.
  
  

Outlook
Silico manganese prices may trend higher in the near future due to rise in manganese ore prices. Prices may rise further as the market is expected to witness bulk export enquiries.