India: Silico manganese prices remain stable amid moderate inquiries

Silico manganese prices in India remained unchanged amid low demand and moderate inquiries from the overseas markets led to demand remaining muted. Silico manganese manufacturers did not show interest in selling bulk quantities.

As per SteelMint's assessment on 6 June 2022, Raipur-based producers offered material at INR 79,000/t exw, down INR 2,000/t w-o-w, while prices in Durgapur stood at INR 78,000/t exw, a slight decrease from the previous week.

Responding to overseas inquiries, exporters offered 60-14 grade material at around $1,050/t, down by $70/t from last week. Prices for 65-16 grade were assessed at $1,190/t FOB India, a decrease of $55/t w-o-w. SteelMint recorded trade volumes of around 7,800 t in a weak market.

Factors influencing prices

• High production costs of silico manganese are keeping manufacturers worried. They are unwilling to lower prices below INR 78,000-80,000/t. As a result, prices remained stable.
  
  
• Meanwhile, manganese ore import prices were also stable w-o-w. Currently, the price of manganese ore (37%) from South Africa is about $5.25/dmtu CNF India. This has also encouraged producers to keep manganese ore prices stable.
  
  
• Domestic steel prices are under pressure due to moderate demand, which impacted the procurement cycles of distributors and sellers and kept the domestic market quiet. Prices remained stable as a result.
  
  

China market overview

Silico manganese (60-14) prices in China are stable at RMB 7,400/t ($11,09/t) exw-Inner Mongolia, while 65-17 grade is being offered at RMB 8,255/t ($1,237/t) exw-Inner Mongolia. Prices are stable amid weak demand. 
However, silico manganese futures on the Zhengzhou Commodity Exchange (ZCE) for October 2022 delivery climbed w-o-w to RMB 8,502 /t on 2 June.

Outlook
As a result of supply-demand mismatch, silico manganese prices in India are expected to remain rangebound with marginal fluctuation in the near future.