India: Silico Manganese Prices Unchanged Amid Weakening Demand

Silico manganese price maintains stability, but demand is softening on account of uncertainty due to introduction of new tax regime by the Indian Government.

Prior to implementation of Goods & Service Tax (GST) in the country, Silico Manganese traders have limited their purchase in order to maintain low inventory. "Traders are mainly affected by GST as they need to pass on the VAT to final purchasers before implementation of the tax regime," said a producer source justifying limited transactions on risk associated with maintaining stock.

The traders are looking at reducing their closing stock, by reducing their purchases, as they have apprehensions that the GST would adversely affect their business amid uncertainty about whether they will be able to clear their old stock in time.

SteelMint assessed silico Manganese prices at INR 65,000/MT (Ex-Durgapur) and INR 65,500/MT (Ex-Raipur). However, few deals were also heard to be concluded at INR 65,000/MT in Raipur.

In the export market, Indian producers have kept offer firm in line with high cost of Manganese Ore and better buying interest from European and Asian countries. Silico Manganese 60-14 is being offered at USD 1000 /MT FOB East-coast India, and Silico Manganese 65-16 is being offered at USD 1090 /MT FOB East-coast India.

On the future outlook, buying interest in Silico Manganese could be under pressure in the coming days, as Steels fundamentals have shown no sign of improvement.