India: Silico manganese prices drop amid weak steel demand

Manganese alloys demand in the domestic and export markets weakened, causing silico manganese prices to decline marginally in India. Moreover, manganese ore prices have also decreased for quite some time, making it possible for buyers to take advantage of the lower prices.

Currently, weak steel demand is hurting silico manganese prices. Some bulk deals in the material were also struck at lowered prices.

As per SteelMint's assessment, Raipur-based producers offered material at around INR 73,600/t exw, down by 1% w-o-w, while in Durgapur prices were at INR 73,100/t exw, also down 1% w-o-w.

Meanwhile, producers' quotes for grade 60-14 remained at around INR 74,000-74,500/t exw-Raipur, while Durgapur producers quoted at INR 73,000-74,000/t exw. However, traders offered at around INR 72,500-73,500/t exw in both markets amid weak 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 $910/t FOB for 60-14 grade, down $21/t from last week, while prices for the 65-16 were assessed at $1,029/t FOB, down by $9/t w-o-w. As a result of limited enquiries from overseas, silico manganese export prices fell.
SteelMint recorded trade volumes of around 1,500 t in the export market amid subdued demand.

Factors keeping prices under pressure

• Subdued steel demand: Lack of demand and fluctuating raw material prices kept the Indian steel market sluggish. As a result, when it came to reserving bulk volumes, many customers preferred to wait to see if spot prices would weaken further. SteelMint's domestic steel billet index was at INR 45,650/t exw-Raipur on 21 March 2023, down by INR 450/t w-o-w.
  
  
• Manganese ore prices fall: Low demand for manganese alloys forced production cuts by the smelters in the domestic market and contributed to the lowering of manganese ore prices, which impacted silico manganese prices in turn. Imported manganese ore of Mn37% grade (of South African origin) was being offered at $4.3/dmtu CNF East Coast, down by 3% w-o-w. The Mn46% grade (of Australian origin) was offered at $6.10/dmtu CNF Vizag, according to SteelMint's assessment.
  
  
• Silico manganese market remains bearish: The global silico manganese market remained bearish, which reduced liquidity and impacted prices in the domestic market.
  
  

Outlook
Prices of silico manganese may remain steady in the domestic market in the near future, provided both steel demand and production look up.