India: Silico Manganese Prices Shoot Up with Improvement in Steel Market

Indian Silico Manganese prices escalated at the start of the week due to an increase in the TMT and Billet prices. Billet prices have gone up by approximately 5% W-o-W, which boosted the sentiments of steelmakers in India and therefore the demand for Silico Manganese increased. Recently, Silico Manganese was being procured hand-to-mouth for catering to the needs of the market due to down streaming market conditions and thus had little inventory. With the increased demand, the producers are over-booked for about one month and the supply shortage is being experienced in the overall domestic market. Although the production has increased, the supply crunch persists in the market. Meanwhile, there is a strong sentiment prevailing in the market, that MOIL may increase the prices of Manganese Ore by significant levels in line with firm seaborne Manganese Ore prices. A Durgapur based producer shared that the prices are in the positive trend and we are hopeful that it may rise further, also we hope that the next one or two months may make up for the losses incurred in the last six months.

Prices in the last week of December went up by significant levels W-o-W, opening the week at INR 64,000-65,000/MT Ex-Durgapur. Meanwhile, in Raipur, it is at around INR 64,000/MT. Although few producers in Raipur have started quoting at INR 65,000/MT, the acceptance in the market is still lagging. In the export market, the price increased W-o-W at USD 870/MT for 60-14 grade and USD 960/MT for 65-16. Due to Christmas and New year holidays, the export market remained silent and the exporters are curious about how the market functions after the holidays.

On the future outlook, the producers are quite affirmative about the increase of the Silico Manganese prices in the coming few weeks. However, to what extent the prices will increase would be decided by the revision of MOIL prices. Thus, the producers are keen on MOIL's Manganese ore price revision.