India: Silico manganese prices fall by INR 1,100/t w-o-w on bid-offer disparity

Prices for silico-manganese in India declined this week by around INR 1,100/t due to low demand and drop in raw material prices, especially for higher grades of manganese ore.

Silico manganese prices were affected by slowing demand over the past few weeks, with Indian producers in particular finding it difficult to sell to the international and European markets as a result of rising electricity inflation and liquidity issues.

According to SteelMint's assessment, silico manganese prices in Raipur were at INR 69,700/t exw, down by 1,200/t w-o-w. Meanwhile, prices in Vizag were at INR 70,100/t exw, down 900/t. In Durgapur, producers' offers declined by 1,400/t to INR 68,400/t exw.

Producers' quotes for grade 60-14 decreased slightly to around INR 69,500-70,300/t exw in Durgapur, Raipur, and Vizag. However, traders' offers were slightly lower at INR 68,500-69,000/t exw in all three locations amid declining bulk inquiries. This week, SteelMint recorded trade volumes of around 3,000 t of manganese alloys in the domestic market, down 500 t from last week.

Factors impacting prices

• Manganese ore import prices fall: Manganese ore prices decreased by $0.05/dmtu w-o-w for higher grade imported material. This fall has been attributed to a decline in demand from major manganese-producing countries and lowering of steel production in the majority of Asian and European countries. Declining ore prices have enabled silico manganese producers to decrease their offers. As per SteelMint assessment, the price of grade Mn 46% (lumps, Australian-origin) stands at $4.75/dmtu CNF Vizag, India.
  
  
• Global silico manganese market bearish: Bearish sentiments persisted in the global silico manganese market which dampened liquidity, thus affecting domestic market prices. Export volumes last week stood at just 2,500 t.
  
  
• Bid-offer disparity: Lack of buying interest and uncertain market conditions resulted in limited international enquiries. Seaborne purchasers sought material at $910-925/t FOB (for 65-16 grade) at a significant discount to bids. But it was difficult for smelters to sell material at such low prices, which led to low export transactions. Consequently, prices inched down.
  
  

Outlook
Prices are expected to change in the short-term. Although domestic steel prices are fluctuating, smelters anticipate an increase in overseas inquiries, which is a positive signal.