India: Silico manganese prices edge down on tepid demand

Indian silico manganese prices continued their downtrend as steel mills lacked buying interest. Current silico manganese prices have dropped marginally w-o-w. Prices in Raipur are recorded at around INR 91,800/tonne (t) ex-works and in Durgapur at around INR 91,100/t exw for the 60-14 grade.

Low demand fuels oversupply concerns
Due to continuous decrease in prices of silico manganese, buyers have started showing reluctance in making bookings. This has increased selling pressure on the domestic producers. High inventories with domestic smelters could result in prices getting soft in the near-term.

On the other hand, demand for the 65-16 grade has increased on limited availability in the domestic market. Currently, producers are offering at $1,430/t FOB India. A few producers are booked till Nov'21 and are offering at even higher prices of $1,450-1,460/t FoB India, SteelMint learned from sources.

Imported manganese ore prices drop
Major manganese ore miners have reduced their offers for October shipments owing to limited buying interest from China. Low production due to power supply restrictions in China resulted in less interest in imported ore bookings. These further pressured miners to reduce manganese ore offers.

Silico manganese sellers are not getting support in increasing prices of the material due to reduced imported manganese ore prices.

Down trending steel markets weigh on silico manganese demand
The domestic steel market continues to see subdued demand owing to the ongoing monsoon. Meanwhile, there is also a lack of interest seen from importers due to high-cost containers. In addition, a few major importers of Indian flat steel are struggling with Covid resurgence which resulted in muted demand for steel in the domestic market. Low demand with high steel inventory has further influenced buyers to book silico manganese in limited quantity.

Outlook
The current market sentiments indicate that Indian silico manganese prices will further soften during the monsoon owing to low demand with decent inventories despite the upward global trend. However, robust demand outside India might support domestic prices if the container shortage problem eases.