India: Silico manganese prices remain range-bound amid lack of strong demand

Silico manganese prices remained range-bound last week amid considerable local demand, but only a few inquiries from outside the area. Manufacturers in different locations had to cut back on output in order to recoup input costs, which kept prices range-bound.

As per SteelMint's assessment, Raipur-based producers offered at around INR 77,000/t exw, which dropped by 1% w-o-w, while in Durgapur prices were at 77,500/t exw, nearly stable w-o-w.

Meanwhile, producers' quotes for grade 60-14 remained at around INR 76,500-77,500/t exw-Raipur. On the other hand, Durgapur producers were seen quoting at around INR 76,000-78,000/t exw. However, traders offered at around INR 76,000-77,000/t exw in both Raipur and Durgapur amid softening demand.

During the week, SteelMint recorded trade volumes of around 9,600 tonnes (t) of manganese alloys in the domestic market.

Responding to overseas enquiries, exporters offered at around $980/t FOB for 60-14 grade, up by 1% from last week, while prices for the 65-16 grade were assessed at $1,120/t FOB, up 1% w-o-w. Prices rose w-o-w amid limited export enquiries and rising prices of raw material since last week.

SteelMint recorded trade volumes of around 3,600 t in the export market amid moderate demand.

Factors limiting prices of silico manganese

• Lower offers from traders: To attract buying interest in the domestic market, traders offered silico manganese at prices which are lower than those offered by manufacturers. Due to lack of demand in the local market, some producers began reducing their output of manganese alloys. This is the reason why prices remained range-bound.
  
  
• Weak global market: The downtrend in global silico manganese prices amid bearish sentiments influenced domestic pricing as well. Due to conflicting opinions, demand for silico manganese in both the local and export markets were constrained. Domestic silico manganese prices were range-bound as a result of restricted purchasing at high costs.
  
  
• Moderate domestic steel market: Domestic steel demand was moderate last week with limited inquiries for bulk bookings, which also kept prices range-bound. SteelMint's daily steel billet index was assessed at INR 45,475/tonne (t) (- INR 200 w-o-w) exw-Raipur on 14 February, 2023.
  
  

Outlook
As a consequence of limited production, India's manganese alloy supply is declining. Thus, silico manganese prices may be impact in the near future. Prices of materials could fluctuate further if export enquiries and steel demand increase.