India: Silico manganese prices unchanged w-o-w in mixed market

Prices of silico manganese in the domestic market last week remained stable w-o-w despite a downturn in steel demand. The range-bound price movements of inputs and imported raw materials like manganese ore and coking coal have been major factors keeping the market subdued. Global steel sentiments have been bearish, leading to lesser enquiries for silico manganese. Moreover, globally, crude steel production has dipped, leading to lesser manganese alloys demand in general, in a cascading effect.

Meanwhile, producers restricted their prices within a range of INR 72,500-73,000/t which kept the prices stable. As per SteelMint's assessment, Raipur-based producers offered material at around INR 73,000/t exw, stable w-o-w, while in Durgapur prices were at 72,500/t exw, also stable w-o-w.
Meanwhile, producers' quotes for grade 60-14 remained at around INR 72,500-73,500/t exw-Raipur, while Durgapur producers were seen quoting at INR 72,000/t - 73,000/t exw.
However, traders offered at around INR 71,500-72,500/t exw in both Raipur and Durgapur amid moderate demand.

During the week, SteelMint recorded trade volumes of around 3,000 tonnes (t) of manganese alloys within the domestic market.
Responding to overseas enquiries, exporters offered at around $920/t FOB for 60-14 grade, up $10/t from last week, while prices for the 65-16 grade were assessed at $1,015/t FOB, up $15/t w-o-w. As a result of improved enquiries from overseas, silico manganese export prices inched up.

SteelMint recorded trade volumes in the export market at around 1,500 t amid soft demand.

Market highlights

• As a result of mixed sentiments, the demand for silico manganese in the domestic and export markets was limited. Silico manganese prices remained stable despite some buyers expressing interest and still being willing to purchase at high prices.
  
  
• Last week, domestic steel demand was moderate, with limited bulk booking inquiries, which allowed silico manganese prices to remain near their previous levels. SteelMint's steel billet index was at INR 43,000/t, up INR 800/t ex-Raipur on 12 December 2022 .
  
  

Outlook
Prices of silico manganese are likely to trend upwards in the short term as domestic demand for manganese alloys remains moderate and India's production of the same has decreased.