India: Silico manganese prices fall to 3-year low on weak demand, limited exports

Silico manganese prices in India fell by roughly INR 800/t this week due to poor demand, sluggish export inquiries, and a marginal drop in prices of all grades of manganese ore.

Domestic silico manganese prices fell to a three-year low influenced by market dynamics that have been uncertain in recent months. Indian producers were finding it difficult to sell to international markets due to rising liquidity issues, and buyers demanding lower prices.

According to SteelMint, silico manganese prices in Raipur were at INR 65,000/t exw, down INR 700/t w-o-w. Meanwhile, prices in Vizag fell by 1,000/t to INR 65,100/t exw. Producers' offers in Durgapur fell by 700/t to INR 63,800/t exw.

Quotes for grade 60-14 decreased slightly to around INR 64,000-65,300/t exw in Durgapur, Raipur, and Vizag. However, traders' offers were slightly lower at INR 63,000-63,500/t exw in all three locations amid declining bulk inquiries. This week, SteelMint recorded trade volumes of around 2,000 t of manganese alloys in the domestic market, down INR 1,000 t from last week.

Factors impacting prices

• Imported manganese ore prices drop: Manganese ore prices fell by $0.05/dmtu w-o-w for all grades of imported material amid declining manganese alloys demand. The reason was lower demand in major manganese-producing countries as well as a reduction in steel output in the majority of Asian and European countries. Due to falling ore prices, silico manganese producers have reduced their offers. Prices of grade Mn 46% (lumps, Australian origin) are $4.7/dmtu CNF Vizag, India.
  
  
• Lower demand for manganese alloys: Demand for manganese alloys decreased during the festive season last week, which also impacted domestic steel mills' consumption of manganese alloys as they had ample stocks. Also, limited buying interest in finished steel led to a decrease in silico manganese consumption resulting in a marginal drop in prices.
  
  
• Bearish global sentiment weighs on exports: Bearish sentiments persisted in the global silico manganese market which dampened liquidity, affecting domestic market prices. Export bookings recorded by SteelMint last week stood at just 1,200 t.
  
  
• Billet prices drop: Weak demand and fluctuating raw material prices held the key. SteelMint's domestic steel billet index was assessed at INR 41,200/t exw-Raipur on 25 October in the early trading hours, down INR 600/t w-o-w. Overall, demand has thinned and mills are saddled with inventory, which has kept long steel prices under pressure.
  
  

Outlook

Domestic prices may fluctuate in the short term due to fluctuations in prices of imported raw materials. Low-cost bargains and changes in supply-demand dynamics will affect prices.