India: Silico Manganese prices increase over short supply

Silico Manganese producers have started quoting higher prices in line with supply shortage and the shutdown of a few major suppliers. This week, the prices for imported Manganese ore prices increased marginally in line with global prices stabilizing and less availability of Manganese Ore. Silico Manganese market is showing positivity due to supply shrinkage worldwide. However, with the down streaming Steel prices, the acceptance of hiked Silico Manganese prices there is still a question mark hanging.

In Raipur, the prices are up by INR500/MT to INR 57,000/MT ex-Raipur. However, a few producers are quoting higher prices at INR 57,500/MT. Meanwhile, Silico Manganese Prices in Durgapur increased by considerable levels and are at INR 57,000- 58,000/MT for both regular and premium sized material. Producers are quoting the premium sized material at higher prices, but due to tepid demand in the market, buyers are not willing to accept it, and the deals are being concluded at the same levels. In the export market, prices increased by USD10/MT and are at USD 760/MT for 60-14 grade and USD 860/MT for 65-16 grade. SAIL Chandrapur Ferro Alloys Plant conducted e-Auction on 21-Nov for Silico Manganese (0-3 mm) & (3-10mm). The total quantity offered was 700 MT out of this 300 MT was booked at INR 29700/ MT.

Demand in the export market is picking up, but the imports from other countries are affecting global demand for Indian Silico Manganese. However, due to reduced production worldwide owing to the falling alloy prices, the supply situation is checked and the prices are firm in many producing countries.

On the future outlook, prices may remain stable and increase marginally. However, acceptance of increased prices amidst the dull Steel market is an issue that needs to be checked.