India: Silico Manganese Producers Fret as Market Softens Further

Indian Silico Manganese domestic prices in Raipur fell again this week by INR 500/MT, whereas it was stable in Durgapur. Producers are mostly pessimistic as the market is continuing to go downward. According to sources, the producers were expecting the prices in the domestic market for the free-fall to halt with the recent stability in the steel prices, but that has not happened, said the producer. Prices have been going down for five months now and the further direction is unknown, he added. There is also no sign of improvement from the export market; meanwhile, the market is facing a supply surplus scenario with low demand, which is worsening the situation for the producers. Export prices have also been falling for 5 consecutive weeks now.

In Durgapur, Silico Manganese 60-14 is being offered in the range of INR 61,500-62,000/MT Ex-Durgapur. In Raipur, the prices are in the range of INR 60,500-61,000/MT Ex- Raipur. In the Export market, the demand remains moderate; producers are offering 60-14 grade at USD 855/MT and 65-16 is being offered at USD 960/MT. Meanwhile, some deals for grade 60-14 in Durgapur region were heard to be concluded at INR 61,750-62,000/MT and a Raipur based trader closed a deal on Friday at INR 61,000/MT.

Chinese Market:
Silico Manganese demand in China remained subdued and the prices are still weak after the mid-September holidays. Manganese ore prices softened in China after Hebei Steel lowered its September tender price for Silico Manganese. Manganese Ore inventory is sufficient and the buyers are aggressively negotiating for the lower prices in line with falling manganese alloys prices, but the miners are hard to convince. However, stocking of Manganese ore before the National Day holidays can provide favorable support for the Manganese Ore market. Recent depreciation of Chinese Yuan against the US Dollar has made imports more expensive for the Chinese Alloy Manufacturers. Increasing freight cost from South Africa to China is also a reason to worry for the Manganese Alloys Producers in China.

On the future outlook, prices of Silico Manganese are to remain under pressure globally. Any rise in prices is therefore highly unlikely owing to the tepid demand. However, with the recent stability in the Steel prices, the prices of Silico Manganese may also attain stability and better demand. Producers are mostly in a wait and watch mode for now.