India: Silico manganese prices remain stable on moderate demand

India's silico manganese prices remained stable w-o-w, with marginal deviations owing to moderate domestic demand. Producers are continuously trying to increase offers, but buyers are negotiating hard; resisting the price hike.

According to SteelMint's assessment on 20 Dec'21, the current market prices for 60-14 grade are at INR 91,950/tonnes(t) exw- Durgapur and INR 92,450/t exw- Raipur. Overall, India's three major producing regions (Raipur, Durgapur and Vizag) are offering in the range of INR 91,000-93,000/t- exw.

Market highlights:

• There is limited demand in the domestic market. Only those buyers are booking silico manganese, whose stocks have been exhausted. The rest are in wait-and-watch mode in hopes of a further decline. Thus, moderate demand resulted in stable domestic silico manganese prices. But exporters are receiving sufficient inquiries from seaborne buyers. Currently, exporters are offering at $1250/t, FOB India for 60-14 grade while 65-16 are being offered at $1450/t, FOB India. However, SteelMint has not yet heard of any big deals in the export market since last week.
  
  
• Imported manganese ore prices dropped last week due to a lack of activity. A lack of interest in buying manganese ore led to a rise in supply and a bearish market. Furthermore, this is forcing buyers to maintain price stability for silico manganese.
  
  
• Steel prices are still being pressured by slower downstream sales, which is impacting the procurement cycles of distributors and stockists. The slowdown of the steel market is also impacting prices of silico manganese.
  
  
• Leading steelmaker SAIL closed a tender for 6000t of silico manganese (60-15) at a base price of INR 93,381/t, excluding taxes, last week. It is also the reason behind the firm price of silico manganese. In the near term, shortage in materials is likely to hit dispatches. Consequently, silico manganese prices may increase.
  
  
• China's silico manganese prices are range-bound as a result of sluggish demand and thus do not support Indian producers. Buying enthusiasm amongst downstream companies is average, and they are cautiously watching the market trend. In addition, the Ulanqab City Bureau of Industry and Information Technology published a notice concerning three special policy revisions regarding high pollution and high energy consumption. This may enhance confidence and boost the price of silico manganese. This has not affected India's offer.
  
  

Outlook
Silico manganese producers are getting a flurry of inquiries from the export market. Moreover, allocation of large quantities in government tenders might create some shortage in the near future. Thus, it is expected that prices may rise in the near-term.