India: Silico manganese prices see steep decline in recent deals

• Billets, longs prices drop in indication of weak demand
  
  
• Manganese alloys auctions fetch lower bids
  
  
• Downturn in steel prices delay silico purchase decisions
  
  

This week, domestic silico manganese prices experienced a surprising downturn, defying expectations. Key production hubs reported a significant w-o-w price correction of INR 5,700/t (approximately $ 68/t). This price decline came due to subdued demand in the domestic market despite ongoing cost pressure amidst rising imported ore prices.

BigMint's assessment on 11 June revealed a substantial w-o-w decrease of INR 5,500-5,800/t ($65-$70/t) for grade 60-14 silico manganese. Prices of this grade were assessed yesterday at INR 86,300-88,000/t ($1,034-$1,054/t) ex-works.

The premium grade (60-15) has also witnessed a slight rise in prices, currently to INR 89,500-90,500/t ex-works ($1,072-$1,083/t) in Durgapur and Raipur.

Factors impacting silico manganese prices

Trade volumes fall as buyers eye price correction: The silico manganese market is seeing weaker-than-anticipated buying activity in both domestic and export markets. BigMint data shows a significant decline in transaction volume (2,200t down from last week) across key regions. Limited demand in steel mills domestic and buyers might be exercising prudence, possibly expecting further price adjustments in the near future.

Also, a few bulk auctions were concluded at lower rates which set the benchmark for domestic silico manganese prices which were assessed at around INR 88,500/t exw. https://www.bigmint.co/intel/detail/india-am-ns-books-4-500-t-of-silico-manganese-at-reverse-auction-29366

Drop in billet prices w-o-w: BigMint's steel billet index, a key benchmark in India, witnessed a significant decline of INR 1,250/t to INR 44,300/t ($511/t) exw-Raipur on June 12, 2024. This downtrend reflects ongoing negativity in both finished and semi-finished steel segments, leading to cautious buying behavior. Steel mills are limiting purchases to meet immediate needs while the market corrects. The weakness in the steel market is having a ripple effect on silico manganese prices.

Outlook

Cautious mill owbers, holding off on large silico manganese purchases, have cast a shadow of uncertainty on domestic silico manganese prices. Close monitoring of raw material costs and buying activity, both domestic and overseas, is essential to navigate this evolving market.

The US Commerce Department has initiated an anti-dumping investigation into silico manganese imports from India. Few smelters sold the material below fair value, resulting in a preliminary dumping margin of 1.71%.

The final decision, including potential duties, is expected within 120 days. This could impact Indian silico manganese exports to the US, potentially leading to lower export volumes and price adjustments.