India: Silico manganese prices stable w-o-w on sluggish demand

Indian silico manganese prices remained stable amidst modest demand from steel mills. Raipur-based producers have, however, started lifting their prices as they have already met their monthly target for the next two months.

According to SteelMint's assessment on 10 Jan'22, prices in Raipur are at INR 99,200/tonne (t) ex-plant, and in Durgapur at INR 97,500/t ex-plant. Some producers have already increased their offers to INR 101,000/t exw basis. Meanwhile, export prices are at $1,310/t FoB India for 60-14 grade and $1,455/t FoB India for 65-16 grade.

However, only a few deals of around 2,000 t of manganese alloys (different grades and sizes) were recorded by SteelMint at these levels last week, while the export market remained relatively weak due to the New Year break.

Market highlights

• Smaller domestic steel mills are showing resistance in booking silico manganese at higher levels as steel prices are under pressure due to sluggish demand in the domestic and export markets. Consequently, this kept silico manganese prices stable.
  
  
• The New Year holidays also dampened exports last week. Weak demand from seaborne buyers, especially from Europe due to the New Year holidays also resulted in steady prices. Market sources expect prices to increase once export inquiries resume. However, major Indian exporters remained booked for the next two months on few inquiries from Middle East buyers last week.
  
  
• China's silico manganese prices also remained stable w-o-w in most of the major producing provinces. Producers were experiencing lower profit margins and looking for low-cost offers which kept trade sluggish. This also resulted in stable domestic prices.
  
  

Outlook
Indian silico manganese producers are keeping positive hopes in terms of demand as they await the return of European buyers for a clear price direction.