Go to List

Indian silico manganese prices rise on global cues, strong steel prices

Indian silico manganese prices rose by roughly INR 1,800/t exw w-o-w, driven by an increase in overseas inquiries, particularly from the EU, and a few bulk agreements fro...

Silico Manganese
By
470 Reads
5 Sep 2023, 19:03 IST
Indian silico manganese prices rise on global cues, strong steel prices

Indian silico manganese prices rose by roughly INR 1,800/t exw w-o-w, driven by an increase in overseas inquiries, particularly from the EU, and a few bulk agreements from overseas.

SteelMint observed a slight increase in silico manganese prices after news came in that Eramet's operations have come to a temporary halt. All market participants have began raising their prices, thinking that the shortage of manganese ore could drive up prices. However, the very next day, the miner spread information about resuming production, leading to resistance in the expected hike.

According to SteelMint's assessment, silico manganese prices in Raipur are currently at INR 70,900/t exw, up 2,300/t w-o-w. Meanwhile, prices in Vizag reached INR 70,500/t exw, up 1,700/t exw. In Durgapur, producers' offers rose by 1,500/t exw to INR 67,900/t exw.

Producers' quotes for grade 60-14 increased slightly to around INR 71,000-71,500/t exw in Durgapur, Raipur, and Vizag. However, traders' offers were slightly lower at INR 69,500-70,000/t exw in all three locations amid improving inquiries. This week, SteelMint recorded trade volumes of around 3,500 t of manganese alloys in the domestic market.

Factors driving silico manganese prices higher

  • Rising concerns for supply and demand: The market has begun acquiring Indian silico manganese on the eve of political and economic problems, which were a source of concern in the current market. Buyers were more concerned about rising material cost as ores prices had bottomed out.
    Moreover, the electricity crisis in Andhra Pradesh (AP), caused by high summer demand and reduced supply from distribution agencies, has created a daily shortfall of approximately 40 million units, SteelMint reported yesterday. However, some sources informed, that power distribution providers in AP have removed the power cut and announced that power would be delivered without interruption. Previously, the businesses decided to cut power to the industries for 10 days.

  • MOIL increases manganese ore prices: The halt in Eramet production and reduced availability of high-grade ore were also reflected in the September delivery prices of MOIL. The Indian state-owned PSU miner has hiked up manganese ore prices by 3.5% m-o-m for September exports. This also influenced smelters offering a marginal rise in domestic and export markets.

  • Indian steel prices rise: Steel raw material prices have risen on the back of higher raw material prices. Meanwhile, purchase activity in semi-finished steel and sponge iron increased, owing to an increase in demand as the market progressed. This has an effect on the price of silico manganese. SteelMint's daily steel billet index was assessed at INR 45,400/tonne (t) (increasing by INR 450/t w-o-w) ex-Raipur.

Outlook
With the progressive development of steel mill bidding, the market is confident about the outlook, and price support outlook is robust. Currently, the spot price of silico manganese remains strong, and manufacturers are confident on rising prices, as raw material prices are also on uptrend. The market is projected to improve in the short term as a result of price acceptance.

5 Sep 2023, 19:03 IST

 

 

You have 1 complimentary insights remaining! Stay informed with BigMint
;