Limited trade weigh on Indian silico manganese offers, market awaits MOIL price revision

Limited activity in both the domestic and export markets, coupled with price fluctuations in the steel sector, resulted in a weekly decline of INR 650/tonne (t) in Indian silico manganese prices.

According to SteelMint, silico manganese prices in Raipur were at INR 64,200/t exw, down by INR 800/t w-o-w. Meanwhile, prices in Vizag fell by 600/t to INR 64,500/t exw. Producers' offers in Durgapur fell by INR 600/t to INR 63,200/t exw.

In Durgapur, Raipur, and Vizag, quotes for the grades 60-14 dropped marginally to roughly INR 63,500-64,500/t exw. In the face of dwindling bulk inquiries, traders' bids were somewhat lower in Durgapur, at INR 63,000/t exw, and in Raipur and Vizag, at about INR 64,000/t exw. Manganese alloy transaction volumes on the domestic market were reported by SteelMint to be approximately 1,500 t this week, down by 500 t from the previous week.

The sluggish trade was mostly caused by limited trading with overseas markets, which has a greater impact on domestic prices.

Factors impacting prices

• Reducing intake of silico manganese in global steel mills and material surplus: Low demand for silico manganese and weak steel mill consumption in the global market have caused certain mills to lose money, which has resulted in output reductions. Conversely, India's average silico manganese output was building up stockpiles as a result of low demand from major importing nations like Italy, Turkey, and the United Arab Emirates, as there were a few inquiries from these regions. Additionally, the conflict between Israel and Hamas is affecting maritime shipping routes. Some shipments have been delayed, which additionally impacted material pricing, according to sources.
  
  
• Volatility in billet prices: Last week's billet pricing reflected average demand and shifting raw material prices. On October 31, SteelMint's domestic steel billet index was valued at INR 42,000/t exw-Raipur, up by INR 150/t w-o-w. However, on a d-o-d basis, prices have fallen by INR 400/t. Overall, demand has become less and mills have to cope with inventory, causing long steel prices to fluctuate in the short run which has not much impact on silico manganese domestic prices.
  
  

Outlook
Silico manganese prices may continue firm because the producer has no additional room to cut prices. On the other hand, demand is slowing, actual costs are high, trading activity is below average, and the market is generally cautious. Low-price transactions and offshore demand will have a greater impact on silico manganese domestic pricing in the near future.

Market seems to be awaiting MOIL's manganese ore price revision which is round the corner.