Indian silico manganese exports remain slow, prices stable w-o-w

Export prices for silico manganese from India remained range-bound w-o-w owing to mixed market sentiments. As per SteelMint assessment, prices for 60-14 grade stood at $848/t FOB and $945/t FOB for 65-16 grade, unchanged w-o-w. Sluggish demand in the export market and increase in the number of export inquiries at lower rates of $920-930/t FOB kept prices stable.

However, a few deals of around 1,000 t were heard concluded between $925-935/t FOB owing to hard bargaining between buyers and sellers. Sellers believe that prices have touched the bottom and are receiving a low margin whereas traders inform that raw material prices are falling and hence prices are likely to slide.

Trade (Weekly)

China's ZCE futures supported
The futures market remains volatile, while operating sentiment has risen. On the Zhengzhou Commodity Exchange (ZCE), silico manganese futures contracts for November delivery increased by RMB 24/t ($3/t) w-o-w to RMB 7,158 /t ($981 t) on 18 September. As a result, domestic producers resisted lowering their offers.

Chinese silico prices rise over $25/t w-o-w- Chinese silico manganese prices continued their uptrend for yet another week. Cash quotations for silico manganese increased to RMB 6,790-6,890/t ($932-946/t) including tax. Prices have risen by RMB 200/t ($27) w-o-w. Although silico manganese prices rose this week on improved trade activities, some small factories have started producing again and so material availability has increased. However, prices are strong because of steep cost of production, which is prompting manufacturers to keep offers firm in order to maintain margins.

Outlook
Export prices may fluctuate in the near term due to changes in raw material prices. In addition, low-priced deals and variations in supply and demand for silicon manganese are key factors to watch out for.