Indian Silico Manganese Sees Low Demand in Domestic and Overseas Markets

Silico Manganese prices are under pressure amid limited demand and reducing ore prices in domestic as well as global markets.

With the lackluster demand in the Steel market due to oversupply in the global scenario, the demand of Silico Manganese remains limited. However, moderate domestic demand is witnessed in India but owing to the present demand the correction in prices seems less possible.

With recent trade war and lower international prices, the domestic prices are also going down. However, stocking-up of Silico Manganese in East Asia and South East Asian Countries prior to the Spring festival seems to be over now and is also one of the major reasons for limited demand from the major importers for India viz., Japan and Taiwan.

Prices in the fourth week of Jan'19 for the domestic market are INR 67000/MT for both, Ex-Durgapur and Ex-Raipur. Despite limited demand, the producers have maintained offers level at USD 950/MT FOB India for the grade 60-14, and USD 1,040/MT FOB India for the grade 65-15 and USD 1050/MT FOB India for the grade 65-16. However, traders are expecting the prices to go down further as they want the commodity in much lesser price than offered.

Chinese Market:
China is facing production cuts because of high electricity cost in the major producing areas. However, there are chances for China to come out of stalemate market situations after the Spring festival. With the domestic economic growth of China suffering, high expectations cannot be cherished but, due to a few policies like the rebar policy, a sigh of relief can be foreseen.

Although, there are chances of increase in demand during Mid-Feb post Spring festival. However, until then the producers have to survive in the bearish market.