India: Silico manganese prices fall further in shrinking demand

India's silico manganese prices continued to drop further due to low consumption by domestic mills as many of them undertake production cuts to tide over the bearish period. Additionally, with the continued downtrend in raw material prices, domestic buyers were eager to receive the lower quotes for silico manganese. As a result, prices fell further.
According to SteelMint's assessment, Raipur-based producers offered at around INR 88,100/t exw, down by INR 5,000/t w-o-w while prices in Durgapur were at INR 83,800/t exw, lower by INR 7,200/t w-o-w.

Responding to overseas inquiries, exporters offered at around $1,220/t for 60-14 grade, down by $30/t from last week, while prices for the 65-16 grade were assessed at $1,405/t FOB India, down by $65/t w-o-w.

Meanwhile, SteelMint recorded trade volumes of around 2,000 tonnes (t) in a shrinking market.

Factors affecting demand

• Low price requests from European market: Indian silico manganese suppliers were not willing to accept low price requests from the European market as they were concerned about the profit margins.
  
  
• Quotes from traders lower than manufacturers: Traders offered prices for silico manganese that were lower than that of manufacturers in order to convince buyers in the domestic market. This led to prices getting quoted on the lower side.
  
  
• Indian steel market sees subdued demand: The Indian steel market was subdued owing to fluctuations in raw material prices and lower demand. As a result, many buyers are in wait-and-watch mode for booking in bulk quantities. This further created weak demand in the spot market, leading to reduced prices.
  
  

China market overview

China's silico manganese (60-14) prices were stable at RMB 7,500/t ($1,111/t) exw-Inner Mongolia, while the 65-17 grade was offered at RMB 8,305/t ($1,230/t) exw-Inner Mongolia. Silico manganese prices in China saw a downward trend owing to weak demand and sufficient inventories with the traders.
Prices for silico manganese in China are expected to stay weak but stable in the short term.

Outlook

In the current bearish market scenario for manganese alloys, it is expected that silico manganese prices will remain low, hovering at around INR 90,000/t levels in the coming days. Meanwhile, cutting down of manganese alloys production in China in order to mitigate the loss of sales can also lead to a further decline in silico manganese prices. If inquiries from export markets resume, prices may rebound, sources informed.