India: Silico manganese prices remain stable on sluggish trade

Indian silico manganese prices remained stable on firm offers from sellers amid a gloomy futures performance and limited domestic demand specially for 60-14 grade silico manganese. With suppliers maintaining their offer pricing in front of anticipated renewed demand from steelmakers in upcoming deals, the manganese alloys markets remained stable throughout the week, relying on a price increase from the previous week.

As per SteelMint's assessment, silico manganese prices in Raipur were at INR 62,900/t exw, stable w-o-w. Prices in Durgapur stood at INR 61,900/t exw. Vizag's prices were also constant, standing at INR 62,900/t.

Factors keeping trades on lower side

• Rising inventories - Suppliers are maintaining appropriate inventory volumes relative to average of around 1 week, given the weak export demand and restricted local demand. Consequently, a few dealers and large steel producers are providing further discount on for bulk orders. sources informed.
  
  
• Fall in manganese alloys export prices - Since export demand has been weak for a few months, the silico manganese industry has become unstable, resulting in prices that remain constant on an uncertain market sentiment. Prices for Indian silico manganese exports were down by $11/t FOB w-o-w, with the 60-14 grade down $14/t and the 65-16 grade down 1% ($8/t).
  
  
• Fall in domestic billet prices - Last week, domestic steel demand was weak, with few booking queries, so silico manganese prices had no support and stayed flat. Meanwhile, semi-finished steel prices dropped through the weekend. SteelMint's IF steel billet index was at INR 39,950/t, inching down INR 150/t ex-Raipur on 28 November.
  
  

Outlook

Considering the high actual production costs, the market was mainly cautious due to the slow recovery on the demand side, there were few market inquiries, and trading activity was almost average. The silico manganese prices are expected to remain stable in the near future.

Additionally, most mills are currently overstocked with spot material; those in key manganese alloys producing regions are going for the planned maintenance; and few producers, intend to switch to other commodities like pig iron within the coming week. By regulating supply, each of these variables may have an effect on silico manganese prices.

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