Indian silico manganese prices edge up on better demand

Indian silico manganese prices have improved since last week owing to good demand from domestic steelmakers. Currently, the transactional prices of silico manganese are hovering around INR 96,000-97,000/tonne (t) ex-Raipur, and INR 95,000-95,500/t ex-Durgapur for HC 60-14 grade. Meanwhile, prices of premium sizes and grades are marginally higher than the mentioned levels.

Induction furnaces resume operations
Smaller steel mills have restarted production with an increase in prices of steel. There are increased inquiries from the steel mills, while the silico manganese smelters expect prices to increase further.

Coke prices upbeat
Prices of coke in the domestic market have increased by near about 50% in line with supply shortage, which is expected to increase the production cost of silico manganese by around INR 5,000/t.

Export inquiries pick up
Many European countries have turned active again and are showing interest in the Indian market despite the container shortage. Meanwhile, Chinese smelters are facing supply crunch due to low production owing to strict electricity norms. SteelMint assessed the current prices of 65-16 at $1,430/t FoB India. Most of the exporters are booked till Nov'21 and are offering at higher prices of up to $1,450/t FoB India for the immediate shipments.

Domestic freights increases
Buoyancy in the Indian silico manganese market was also backed by increased transportation costs by the Indian transporters amidst increased fuel prices. This has provided leverage to the Indian silico manganese producers to increase their offer levels.

Imported manganese ore prices down
Major manganese ore miners have decreased their prices for Sept'21 shipments owing to less demand from the Chinese market due to high inventory at the port.

Outlook
Silico manganese demand has been increasing in the spot market, which might disturb the supply-demand dynamics. Major silico manganese smelters are booked for the month which may trigger the supply shortage in the domestic market.