Indian silico manganese prices tumble by INR 600/t w-o-w on subdued trade

The silico manganese market performed poorly this week, and the trading environment was devoid of activity. The current manganese ore market is somewhat chaotic, with manufacturers considerably cutting costs and not being attentive to changeable manganese ore prices, with most requests for manganese alloys being made at cheap prices. Coupled with comments from some operating manufacturers that there may be maintenance anticipated in November and a 50% reduction in production since market performance is currently unsteady and mills have enough inventory for the month.

Prices for silico manganese remained consistent with a slight decrease of INR 600/t w-o-w due to limited inquiries from both the domestic and export markets, as well as competitive offers in the market.

As per SteelMint's assessment, silico manganese prices in Raipur were at INR 63,000/t exw, down by INR 700/t w-o-w. Prices in Durgapur fell by INR 800/t to INR 62,200/t exw. Vizag's prices also saw a drop of INR 500/t and were standing at INR 63,200/t.

Factors impacting prices

Adequate inventory at domestic mills: Ample silico manganese inventories with steel mills of around 15-20 days have held consumption of material, which has harmed domestic demand. Furthermore, demand from the construction sector and prefabrication firms was weaker for finished steel, resulting in a modest fall in silico manganese prices.

Slow export demand dragging on silico manganese prices: Demand has been slow in recent months, putting pressure on silico manganese pricing. Due to a global fall in demand for finished steel and decreased buying interest, Indian producers, in particular, have had trouble exporting their products abroad. Furthermore, the liquidity issue has constantly limited buyer interest in manganese alloys. As per SteelMint's assessment on 3 November, prices for the 60-14 grade stood at $771/t FOB and for the 65-16 grade, it was $857/t FOB, down by $5 FOB w-o-w.

Outlook
There is a general wait-and-see attitude in the international market, as well as a slightly lower market spot price due to liquidity constraints. Given the market's relatively slow procurement, it is difficult for the overall price to rise in the near future.