India: Silico manganese prices fall further as buyers delay purchases

• Steel mills adopt cautious stance dragging down prices
  
  
• Container shortages, weak demand continue to weigh on manganese alloy exports
  
  

The Indian domestic silico manganese market has witnessed a significant price correction this week, with prices falling by INR 5,200/t ($62/t) on a weekly basis. A persistent lack of buying activity from domestic steel mills has been a primary driver of the price decline.

BigMint's assessment on 16 July revealed a substantial w-o-w decrease of INR 4,700-5,800/t ($56-$70/t) for grade 60-14 silico manganese, to three-month lows. Prices of this grade were assessed yesterday at INR 68,800-70,000/t ($824-$838/t) ex-works.

The premium grade (60-15) has also witnessed a slight fall in prices, currently to INR 70,500-71,500/t ex-works ($843-$855/t) in Durgapur and Raipur.

"Sellers are ready to offer decent discounts on bulk purchase inquiries, given the weak demand," a southern India based seller said.

Confirmed deals (as per BigMint)

Market factors forcing prices to fall

Weakening demand, cautious buying: The domestic silico manganese market has experienced a period of subdued activity. A combination of factors, including weak demand from steel mills and cautious buying behavior, has led to price decline. Steel mills were delaying purchases due to ongoing monsoon season and uncertainties in the broader steel market. This cautious approach has resulted in lower material prices, as sellers adjusted their offers to stimulate demand.

Billet index holds steady amid market uncertainty: BigMint's steel billet index held steady at INR 39,500/t ($472/t) exw-Raipur on 17 July, 2024. This stability reflects ongoing uncertainty in both the finished and semi-finished steel segments, prompting cautious buying behavior among market participants.

Indian silico manganese exporters face headwinds: Indian silico manganese export prices experienced a significant decline of $ 51/t w-o-w, reflecting a persistent downturn in the market. BigMint's 15 July assessment revealed a three-month low for both grades, with SiMn 65-16 falling to $ 1,005/t FOB and SiMn 60-14 to $ 865/t FOB (Haldia/Vizag).

The confluence of subdued overseas demand and ongoing container shortages has intensified pressure on Indian exporters. The widening gap between Indian export offers and lower asking rates from key regions like the MENA has further exacerbated the situation. Lower export volumes have resulted in diversion of these supplies in domestic market resulting in price pressure.

Outlook

The Indian silico manganese market is currently experiencing a period of subdued demand, leading to potential price declines in the near term. While a resurgence in export inquiries, particularly from the European market post-summer holidays, could offer some support, the overall market sentiment remains cautious.