India: Silicomanganese prices inch up, producers remain firm

• Increase in exports inquiries.
  
  
• Increased manganese ore index prices.
  
  
• Higher international prices for silico manganese.
  
  

Indian silico manganese prices, which witnessed a continuous fall, have bounced back marginally with export inquiries picking up. Most of the exporters reported good number of inquiries from South-East Asian countries and a few producers were also able to book deals this week, which boosted sentiments of the Indian smelters.

Currently, prices in the Indian market are diverse yet range-bound at INR 87,000-INR 88,000/tonne (t) ex-works. Last week, prices had touched INR 86,000/t amidst slow demand in the domestic market. However, most of the producers were unwilling to sell at lower prices.

Meanwhile, in exports, prices remained range-bound but steady as compared to last week. Currently, 60/14 grade is being traded at around $1,200/t and 65/16 at around $1,290-1310/t FOB India. Most of the producers remain booked till June-July and are currently offering August shipments.

Imported manganese ore prices increased this week owing to better buying tendencies from the market. Indian smelters believe that with the increasing global prices of steel, there is still scope for ore and alloy prices to rise further.

Prices in European markets touched sky-high amidst production cuts and higher demand from steel industries. Producers and traders in Europe are willing to procure and stock inventory for the upcoming quarter owing to the ongoing crisis of containers and vessels. However, most of the producers in India remain overbooked and are struggling to cater to spot demands.

Outlook
Indian smelters feel that prices might remain range-bound now at these levels, as correction below INR 86,000/t is highly unlikely as most producers remain booked.