India: Silico manganese prices inch down owing to dull demand

Indian silico manganese prices have been continuously falling amidst low demand in the domestic and exports market. The consumption of silico manganese is not increasing, while its production is in abundance, therefore, the supply-demand mismatch is governing the market.

Producers are of the view that domestic market in central India might improve, as the induction furnaces that went for shutdown, are reviving their production. Hence, it might bring a marginal growth in demand and hence the prices.

All the major tenders are over for now, and there are fewer chances for any new bulk procurements from the major buyers in the next three months, which has led to further depression in the market.

Producers are pessimistic about any increase in the prices and feel that the prices will be range-bound. Currently, the prices are assessed at around INR 59,000-59,500/t Ex-Raipur and INR 59,000-60,000/t Ex-Durgapur. However, bulk deals are being concluded at INR 59,000/t in both the regions. Meanwhile, domestic prices in Vizag is at around INR 59,500/t.

Meanwhile, in the exports market demand remains moderate and only a few deals have been concluded. There is a scarcity of 65-16 grade in the market, as there are not many producers producing the higher grade, thus, the prices may remain relatively stable for 65-16 grade of silico manganese. SteelMint learned from sources, that there is also the growing chances of lockdown in European countries owing to the second wave of Covid. All in all the sentiment is bearish with regards to the silico manganese market.