Go to List

India: Silico manganese prices edge lower to a nearly 2-month low

...

Silico Manganese
By
139 Reads
13 Nov 2024, 19:59 IST
India: Silico manganese prices edge lower to a nearly 2-month low

  • Intense competition, weakening demand impact domestic market

  • Cautious approach, market uncertainties weigh on trades

Domestic silico manganese prices stabilised after a dip earlier this week, mirroring the fluctuation in domestic steel prices. Prices are edging close to a two-month low as similar levels were seen in end September 2024. Trading activity remained subdued, prompting manufacturers across different regions to reduce production in response to excess inventory levels.

According to BigMint's assessments on 12 November 2024, prices of the 60-14 grade plunged by INR 300-800/tonne (t) ($4-10/t) w-o-w to INR 65,700-66,250/t ($778-784/t) exw. Offers in Raipur stood at INR 66,500-67,000/t ($788-794/t) exw.

Premium grade (60-15) silico manganese prices witnessed a slight increase in prices to INR 68,500-69,500/t ($811-$823/t) exw in both Durgapur and Raipur.

Confirmed deal (as per BigMint)

A source informed BigMint that silico manganese prices in Raipur have likely reached their lowest point at around INR 66,300/t exw. However, other smelters suggest a potential correction of around INR 500-800/t due to ongoing market uncertainty.

Market review

Export market subdued: The domestic silico manganese market is currently experiencing downward pressure due to a confluence of factors. Primarily, competitive pricing strategies, particularly from traders in Durgapur and Raipur, have eroded profit margins for producers. Additionally, challenges in key export markets, including Europe, Bangladesh, and the MENA region, have further exacerbated the situation. These factors have led to a surplus of domestic supply, ultimately driving prices downward.

Additionally, stable global manganese ore prices and concerns about future demand have made buyers cautious. Delays in finalizing deals have further pressured prices downward.

Steel prices remain firm w-o-w: The domestic silico manganese market is weakening due to a slowdown in the Indian steel market. Stable prices, modest demand, and limited bulk bookings have reduced demand for silicon manganese in domestic steel mills. This has led to a cautious buyer approach. BigMint's daily steel billet index closed at INR 39,500/t exw-Raipur on 13 November 2024, a w-o-w inched up by INR 300/t. Despite the fluctuating prices, caution prevails, with buyers hesitant to commit to large-scale purchases.

Outlook

Given the current market trends, domestic silico manganese prices are likely to decline in the near term due to a lack of significant demand both domestically and internationally. While production cuts may offer some support, their impact on prices have been limited so far.

13 Nov 2024, 19:59 IST

 

 

You have 1 complimentary insights remaining! Stay informed with BigMint
;