India: Silico manganese prices remain stable amid moderate demand

Silico manganese prices remained stable amid moderate demand in the domestic market last week. The market stability has been influenced by a range-bound movement in input costs and revised power tariffs in some major producing areas, which have been key factors limiting demand for steel.

As per SteelMint's assessment on 28 June 2022, Raipur-based producers offered the material at INR 84,800/t exw, with a marginal correction of INR 300/t w-o-w, while Durgapur prices dropped by INR 800/t to INR 84,300/t exw.

Responding to overseas inquiries, exporters offered 60-14 grade material at around $1,090/t and 65-16 grade at $1,210/t FOB India - unchanged from last week. SteelMint recorded trade volumes of around 10,000 t in a weak market.

Market highlights

• Domestic and export markets of silico manganese experienced moderate demand due to mixed sentiments. Buyers showed less interest with a willingness to lower prices.
  
  
• Silico manganese smelters are waiting for MOIL's new price list for manganese ore for Q3FY2023 deliveries. Considering the stability in seaborne manganese ore prices, it is expected that the company may keep prices range-bound for the third quarter.
  
  
• India's steel market showed an uptick in trade last week with nominal price fluctuations in the domestic market which kept silico manganese prices stable.
  
  

China market overview

Silico manganese (60-14) prices in China were stable at RMB 7,200/t ($1,091/t) exw-Inner Mongolia, while the 65-17 grade was being offered at RMB 8,205/t ($1,218/t) exw-Inner Mongolia. There were rapid fluctuations in the futures market, but stability prevailed in the spot market and supported silico manganese prices.

Meanwhile, silico manganese futures on the Zhengzhou Commodity Exchange (ZCE) for September 2022 delivery showed marginal fluctuations to rest at RMB 7888/t on 28 June.

Outlook

Silicon manganese prices may remain stable in the short term. Market trends will continue to influence supply and demand.