India: Silico manganese prices remain constant on moderate demand

In the domestic market last week, silico manganese prices remained stable amid moderate demand. There has been a decline in demand for steel as a result of a rangebound movement in input costs and imported raw materials, which have been key factors limiting the market's stability.

As per SteelMint's assessment, Raipur-based producers offered material at around 80,800/t exw, stable w-o-w, while in Durgapur prices were at 80,200/t exw, stable w-o-w.
Meanwhile, producers' quotes for grade 60-14 remained at around INR 81,000-82,000/t exw-Raipur, while Durgapur producers were seen quoting at INR 80,000/t - 81,500/t exw.

However, traders offered at around INR 79,500-81,000/t exw in both Raipur and Durgapur amid moderate demand.
During the week, SteelMint recorded trade volumes of around 3,000 tonnes (t) of manganese alloys within the domestic market.

Responding to overseas enquiries, exporters offered at around $985/t FOB for 60-14 grade, up $25/t from last week, while prices for the 65-16 grade were assessed at $1,070/t FOB, up $20/t w-o-w. As a result of improved enquiries from overseas, silico manganese export prices inched up.

SteelMint recorded trade volumes in the export market at around 1,500 t amid soft demand.

Market highlights

• Silico manganese demand in the domestic and export markets was limited due to mixed sentiments. Few buyers expressed interest while still being willing to purchase at high prices of silico manganese which resulted in prices remaining stable.
  
  
• Major manganese ore minor MOIL has cut high-grade manganese ore prices by 7.5% m-o-m, while lower grades remain unchanged. In addition, several buyers were waiting for MOIL's manganese ore prices for Nov-Dec'22 dispatches.
  
  
• Domestic steel demand last week was moderate, with limited bulk booking enquiries, which also held prices down. According to SteelMint, the steel billet index was 46,000/tonne (t) (- 1300) exw-Raipur on 1 November, 2022.
  
  

Outlook
In the short term, silico manganese prices may fluctuate since domestic demand for manganese alloys remains moderate and India's manganese alloys production has decreased.