India: Silico Manganese Producers Continue to Raise Offers

The recent rally in overseas demand for Indian Silico Manganese has instilled a sense of optimism among the producers. Most suppliers have raised offers against relatively tight supply.

Shortage of Silico Manganese in the domestic market continues to prevail, although market participants highlighted demand at these levels are soft and believed a near-term uptick was unlikely. Silico Manganese 60-14 is being offered at INR 64,000/MT (Ex-Raipur) and INR 63,000/MT (Ex-Durgapur). Market sources reported of a supply crunch for immediate delivery.

In the export market, Silico Managnese offer prices have risen slightly on steady demand from Europe, as the European buyers are in the market for their Q3 restocking, before they go away for their summer holidays. Silico Manganese 60-14 is being offered at around USD 980/MT FoB India and grade 65-16 is being offered at around USD 1,090 /MT FoB India.

Moreover, other Asian countries which were waiting on the sidelines are also now inquiring for material. Silico Manganese prices have increased in China on rising Manganese Ore prices. Chinese Steel mills that had earlier deferred their procurement are now accepting higher Silico Manganese prices. Taking a cue from the Chinese market, other Asian buyers are now in agreement with the current offers.

SteelMint assessed that market supply and demand is now approaching a balance following massive production cuts in sight of very weak demand earlier. As such, the market is witnessing a rebound in Silico manganese alloy prices with less selling pressure on the producers.