India's silico manganese producers raise prices amid squeezed trade margins

India's silico manganese producers rose the prices amid drained trade margin to match up the production cost of the material. Silico manganese prices were under severe pressure, and some domestic manufacturers suffered losses in the course of time by keeping the prices lower. In response, producers increased the price after evaluating the production cost.

As per SteelMint's assessment on 21 June 2022, Raipur-based producers offered the material at INR 85,100/t exw, up by INR 4,7 00/t w-o-w, while prices in Durgapur rose by INR 4,300 w-o-w to INR 84,300/t exw.
Responding to overseas inquiries, exporters offered 60-14 grade material at around $1,090/t, nominally up by $50/t from last week. Prices for the 65-16 grade were increased by $ 26/t, at $1,216/t FOB India. SteelMint recorded trade volumes of around 7,300 t in a weak market.

Factors influencing Silico manganese prices

• Rising inquiries in the domestic market: Buyers' inquiries increased after watching up trends in domestic silico manganese prices. This prompted the producers to raise their material prices.
  
  
• Ease in container shortage and Sea freight: Ease in container shortage at port has attracted the sea borne buyers to book the material from India and sufficient inquiries has been countered in export market. This also boosted producers to raise their offers.
  
  
• Indian Steel price rising amid moderate demand: Indian steel prices rose amid moderate demand and buyers were showing more interest in purchasing ahead of the monsoon season. It resulted in a marginal rise in the price of silico manganese.
  
  

China market overview
Silico manganese (60-14) prices in China has shown a marginal fall by RMB 150/t, to RMB 7,200/t ($1,091/t) exw-Inner Mongolia, while the 65-17 grade is being offered lowered by RMB 155/t to RMB 8,205/t ($1,218/t) exw-Inner Mongolia.

Meanwhile, silico manganese futures on the Zhengzhou Commodity Exchange (ZCE) for September 2022 delivery fell to RM 7,874/t on 21 June.

Outlook

Market prices for silicon manganese are expected to fluctuate in the short term, and demand for related products might influence prices.