India: Supply Tightness Drives up Silico Manganese Prices

Silico Manganese Prices are heightened amid supply shortage in major producing areas in the country. Producers in Raipur and Durgapur have started quoting higher prices in line with recent production cuts and the shutdown of a few major suppliers. However, with the down streaming Steel prices, the acceptance of hiked Silico Manganese prices is still a question. This week, the prices for imported Manganese ore prices remained unchanged in line with global prices stabilizing. Silico Manganese market is showing positivity due to supply shrinkage worldwide.

In Raipur, the prices are up by INR500/MT to INR 56,500/MT ex-Raipur. However, a few deals were heard to be done at marginally lower than these levels in Raipur. Buyers are negotiating for lower prices but the producers are relatively firm amid low supply. Meanwhile, Prices for Durgapur increased by considerable levels and are at INR 56,500/MT for both regular and premium sized material. Producers are quoting the premium sized material at higher prices, but due to tepid demand in the market, buyers are not willing to accept it, and the deals are being concluded at the same levels. In the export market, prices remained stable at USD 750/MT for 60-14 grade and USD 850/MT for 65-16 grade.

On the future outlook, prices may remain stable for the short term but further fall is likely to happen in the coming weeks.