India: Silico manganese prices decline on sluggish global demand

Silico manganese prices in India dropped slightly as the demand for manganese alloys decreased on the global and domestic markets. Customers have benefited from lower pricing as a result of the sustained stability of imported manganese ore prices. Furthermore, silico manganese prices edged down following a number of domestic bulk deals.

As per latest assessment, exw offers in Raipur stood at around INR 73,600/t, down 1% w-o-w. Prices of ex-Vizag material slipped over 1% w-o-w to INR 73,850 t, while prices in Durgapur were assessed at INR 73,000/t, down 1% w-o-w.

Meanwhile, producers' quotes for 60-14 grade remained at around INR 73,000-74,000/t exw-Raipur and exw-Vizag, while Durgapur producers quoted at INR 72,500-73,000/t exw.

However, traders offered at around INR 72,500-73,000/t exw in the domestic market amid weak demand.

SteelMint recorded trade volumes of manganese alloys at around 1,700 tonnes (t) of silico manganese and 3,000 t of ferro manganese in the domestic market this week. A few discounted bulk deals were also heard.

Factors affecting silico manganese prices

• Persistent weak demand: Over the past few months, there has been a widening disparity between supply and demand for manganese alloys due to lack of liquidity. High inflation and low liquidity had an impact on silico manganese prices worldwide, which has also had an impact on domestic pricing. Furthermore, low steel consumption led to piling up of stocks for over four months, which compelled producers to lower prices.
  
  
• Subdued steel demand: Lack of demand and fluctuating raw material prices have turned the market sluggish. As a result, when it came to booking bulk volumes, many buyers decided to wait to see whether spot rates would fall further. SteelMint's domestic steel billet index was assessed at INR 43,800/t exw-Raipur on 23 May, down INR 1,050/t w-o-w.
  
  
• Global market bearish: Bearish sentiments persisted in the global silico manganese market which dampened liquidity, thereby affecting domestic prices. Volumes earmarked for the export market last week were just 600 t.
  
  

Outlook
Silico manganese prices are expected to fluctuate in the short term. India's manganese alloys supply has been declining due to limited production. Prices are likely to find support provided export inquiries and steel demand grow.