India: Silico manganese prices inch up amidst rising inquiries

India's silico manganese prices increased marginally w-o-w in line with rising inquiries from both the domestic and export markets.

According to SteelMint's assessment on 17 Jan'22, Durgapur producers started offering at INR 98,500/tonnes(t) exw, while Raipur-based producers are offering at INR 99,900/t exw. Some producers are even trying to push for higher prices as they are speculating that consumers' demand may increase further in the coming days.

Around 2,000 t of manganese alloys transactions have been recorded by SteelMint in the week dated 11-17 Jan'22.

Weekly highlights

• Silico manganese inquiries have picked up in the domestic market. Therefore, producers are increasing their offers after closing each deal. Domestic buyers, however, are still showing little interest in purchasing at higher rates. This led to a marginal increase in prices.
  
  
• Meanwhile, exporters have begun receiving inquiries from seaborne buyers and are currently offering at $1,320/t FOB India for 60-14 and $1,465/t FOB India for 65-16. Some producers are booked till mid-February and are offering deliveries in February and March. This has also prompted producers to raise their offers.
  
  
• Price of steel (induction furnace route) in India also improved this week due to increased raw material costs (mainly coal). The price of silico manganese is also benefitting from this.
  
  
• Imported manganese ore prices in India remained stable this week due to ample stockpiles and reluctance from buyers to book at higher prices.
  
  

China's market review
China's silico manganese prices for 60-14 increased by RMB 50-100/t ($8-16/t) with offers at RMB 7,550/t ($1,189/t) exw in Inner Mongolia and Guizhou due to rising futures prices. However, due to the end of the steel mills' bidding process and the approaching Spring Festival, demand is weakening. In the near future, silicon-manganese prices in China are expected to fluctuate slightly.

Outlook
The outlook for the Indian silico manganese market may be optimistic in the coming days as a result of increased inquiries and tight supplies.