India: Silico Manganese Prices down by INR 500/MT W-o-W

Indian Silico Manganese prices have been falling continuously in line with the down-trending steel market. Moreover, the inventories with producers are increasing; thus, the producers are experiencing selling pressure and the prices are continuously falling down. Offers are now below the Production cost and many producers are going for production cuts in the Eastern region of the country. Producers in the Durgapur area have lowered their production in line with the 9 days festive season that has kicked in. Producers are however pessimistic about any rise in the prices taking into consideration the sluggish Steel market. The export market also remained dull with very limited quantity being traded. Manganese Ore prices are also falling aggressively in the global market as there is limited buying interest. Manganese Alloy producers in China are sitting on huge inventories and are less interested in buying material before the national holidays.

In Durgapur, Silico Manganese 60-14 is being offered in the range of INR 59,500-60,000/MT Ex-Durgapur. In Raipur, the prices are at INR 59,000-59,500/MT Ex- Raipur. In the Export market, the demand is poor amid low buying interest as the buyers have a lot of options in the export market; producers are offering 60-14 grade at USD 840/MT and 65-16 is being offered at USD 935/MT. Meanwhile, a Raipur based producer concluded a deal of 300 MT at INR 59,700/MT last week and are currently offering at INR 59,400/MT Ex-Plant. Another Producer from Raipur concluded a deal of 100 MT for 60-14 grade at INR 59,000/MT on Saturday.

On the future outlook, it may be anticipated that the prices may fall further in line with low demand. However, the producers are waiting for the MOIL prices that are scheduled to be declared tomorrow. It is expected that MOIL would reduce their prices in line with falling Seaborne Manganese Ore prices.