India: Silico Manganese Prices Hits Skyline Owing to the Increased Manganese Ore Prices

Indian Silico Manganese has had to adjust their offers upwards due to the sharp increase in Manganese Ore prices - both domestic and imported. However, the Indian Manganese Alloys are baffled by the recent Manganese ore price revision by MOIL, which is 45% higher against the previous month. Producers anticipate that the Manganese alloy prices will definitely get higher after this announcement by MOIL.

A Durgapur based Silico Manganese producer, however, does not believe that Silico Manganese prices could rise further. He said, "The price of Silico Manganese had already gone up due to the increased global prices of Manganese ore and issue of availability of ore from South Africa, therefore, this hike from MOIL may not affect the prices drastically, however, only small adjustments over the current levels is a possibility".

Current assessment of Silico Manganese is at INR 68,000-69,000/MT for Ex-Durgapur, and around INR 70,000/MT Ex-Raipur. Market participants believe that a further increase in the prices is highly unlikely to be accepted. Few producers have also been heard to offer at much lower prices due to severe cash flow problems. Many believe that the prices are negotiable and may fall back due to strong opposition from the buyers, as the Steel market remains dull, and in such a scenario a 19% increase in the Silico Manganese prices may not be welcomed, particularly given that many steel plants have yet not started to operate and the ones that are operating are functioning at low capacity.

SAIL CFP to Auction 2,100MT Silico Manganese
SAIL Chandrapur Ferroalloy Plant (CFP) to auction 2100 MT Silico Manganese on 11th May 2020 and has offered for sale through forward auction in 21 lots, where the Mn content in the lots are in between 50-57% and Si content 16% and the size of the Silico Manganese is at 0-3mm and 3-10mm. The price to be quoted by the parties shall be basic Ex-SAIL, CFP, Chandrapur.

Outlook
Most producers in India have an inventory of Manganese ore for at least next two months and are not planning on procuring any material this month. The present scenario still remains precarious as the acceptance of high prices is still in question.