India: Silico Manganese Prices in Raipur Up by INR 1000/MT; Outlook Remains Weak
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The Indian Steel Industry has been lifeless and so has been the performance of the Manganese Alloys industry, as both their fortunes are linked.
Domestic demand for Silico Manganese continues to be thin, and market participants highlighted that purchasing was very low in the week gone by. An official from a Silico Manganese manufacturing Company revealed that they have been looking to raise the prices, and when the delivery situation tightened, they got the opportunity to raise prices for prompt deliveries. As a result, Silico Manganese producers in Raipur have increased their offers by up to INR 1000/MT. Silico Manganese 60-14 deals are being concluded at INR 66,000 MT (Ex-Raipur). However, few plants have also been heard to be offered at levels of INR 66,500-67,000/MT. In Durgapur, Silico Manganese continues to be thinly traded and most producers have either opted to significantly cut-down production levels or produce off-grade material. In Durgapur, Silico Manganese 60-14 is trading in the range of INR 66,500-67,000 /MT.
Producers in Raipur increased the offers after the increase in the Silico grade (SM 25-30%) Manganese Ore Prices by MOIL, and Durgapur producers have followed suit.
Demand in the export market is picking up, but the imports from other countries are affecting global demand for Indian Silico Manganese. Producers are offering 60-14 grade at USD 950/MT for Sep Shipment and 65-16 is being offered at USD 1050/MT in the export market. SteelMint learned from market sources that orders were booked for August shipments and can only spare some quantity if buyers are willing to pay USD 10/MT more for September deliveries.
On the future outlook, the demand is moderate and the market is finding it hard to pick up. With the sluggish Steel market, the demand for Silico Manganese is highly unlikely to go up in the near future. Most market participants believe that they are only expecting regular demand and are highly pessimistic about any new demand.
