India: Silico Manganese Producers successful in keeping prices firm for the short term despite falling ore prices
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Indian Producers have managed to keep the prices firm despite falling ore prices. MOIL reduced the Ore prices by up to 25% on 1st Nov'19; this reduction was in line with falling ore prices in the global market. Silico Manganese prices have been hitting low since Aug'19 in owing to the low demand and oversupply situation prevailing in the market. Many factories in the country were unable to withstand the pressure of falling prices and began to reduce the production to significant levels, but the output changes in a short period of time will not affect the market conditions soon. "Although prices for Manganese Ore came down aggressively in the domestic market, it wouldn't affect the Silico Manganese Prices much, as the stock with MOIL is low, and the producers are now firm on lowering the prices further", shared a producer.
The Producers are in a wait and watch mode, as the pressure is building up aggressively in the market. Many producers believe that the prices may fall further, but marginally before attaining stability. In the domestic market, prices are firm in Raipur with producers offering at INR 56,000/MT Ex-plant. Meanwhile, in Durgapur, prices fell further to INR 55,000/MT Ex-Plant. In the export market, prices remain unchanged; producers are offering 60-14 grade at USD 800/MT and 65-16 is being offered at USD 890/MT FOB India.
On the future outlook, prices are stable for the short term but further fall is likely to happen in the coming weeks.
