India: Silico manganese prices remain stable in slow market

Indian silico manganese prices have been stable for many weeks now, despite the fact that trading conditions have been below average. However, a few bulk deals did happen at discounted prices, but which had no impact on the spot market. On the other hand, due to the monsoons, manufacturers have gone slow and kept inventories low, mindful of the transportation challenges.

Besides, manufacturers have also demonstrated an intense unwillingness to sell at lower price points.
According to SteelMint's assessment, silico manganese prices in Raipur are currently at INR 66,600/t exw, stable w-o-w. Meanwhile, prices in Vizag reached INR 66,900/t exw. In Durgapur, producers held offers steady at INR 66,100/t exw.

Producers' quotes for grade 60-14 increased slightly to around INR 66,500-67,500/t exw in Durgapur, Raipur, and Vizag. However, traders' offers were slightly lower at INR 65,500-66,500/t exw in all three locations due to lower bids. This week, SteelMint recorded trade volumes of around 2,500 t of manganese alloys in the domestic market.

Factors keeping prices stable

• Manganese ore prices unchanged over last 4-5 weeks: Manganese ore import prices have remained constant over the last five weeks due to low demand from manganese alloys manufacturers. South African-origin manganese ore lumps of grade Mn 37% are currently priced at $3.75/dmtu CNF India. This has motivated manufacturers to keep prices of manganese alloys stable for these many weeks.
  
  
• Lower offers from traders: Traders began quoting lower for materials which they had acquired at rates reduced from the current offers, expecting a price correction due to weak demand. This countered producers' attempts to raise prices, resulting in price stability.
  
  
• Fall in semi-finished steel prices: The market has been slow due to a lack of demand for steel and fluctuating raw material prices. This week, Indian semis prices slipped as finished steel demand in major regions remained inadequate. Domestic billet prices in some key markets declined by INR 100-550/t. SteelMint's domestic steel billet index was assessed at INR 41,700/t exw-Raipur on 14 August 2023, a decrease of INR 350/t w-o-w.
  
  

Outlook
Domestic silico manganese prices may fluctuate in the near term. Nonetheless, steel production volumes and market dynamics may have an impact on manganese alloy price.