India: Thin Buying Drives Down Silico Manganese Prices in Domestic Market

Indian Silico Manganese prices slide further on soft demand due to relatively high stock level with buyers.

"Sufficient level of stock with buyers have subdued their demand for Silico Manganese," said a producer source expressing his concern. Earlier, the buyers have purchased in bulk in an anticipation of further rise in commodity's prices, he added. The price of Silico Manganese in India is unlikely to rise in the near future as buying interest has been persistently low amid reports of steel mills having booked large volumes earlier and are sufficient inventory.

The raw material prices for the commodity has also made room for Silico Manganese offers to get lower as well as encouraged buyers to negotiate on lower prices.

SteelMint assessed Silico Manganese prices at INR 62,500/MT (Ex-Raipur) and INR 63,500/MT (Ex-Durgapur), while few producers are still offering at higher prices.

The demand for the commodity in the overseas markets has also been disappointing for a while as producers claimed to have concluded only a few deals in the past few weeks.

Moreover, the depreciated INR against USD has provided the overseas buyers an opportunity to bid at lower prices, and also the Indian sellers to offer at lower levels to entice greater buying interest.

Export offers are assessed at USD 980/MT FOB India for 60-14 grade and USD 1080/MT for 65-16 grade.

There is a bearish sentiment in the market, and most market participants hold a wait-and-watch notion - which could further pull down prices.