India: Silico manganese prices soften amid low demand in bearish steel market

Silico manganese prices in India dropped marginally as domestic and export demand for manganese alloys weakened. Additionally, manganese ore prices have been declining for quite some time, which has allowed buyers to take advantage of lower prices.

Weak downstream demand is currently undermining silico manganese prices, resulting in a subdued market. Several bulk domestic deals at lower prices also drove silico manganese lower.

As per SteelMint's assessment, Raipur-based producers offered material at around 73,300/t exw, stable w-o-w, while in Durgapur prices were at 74,200/t exw, down w-o-w.

Meanwhile, producers' quotes for grade 60-14 remained at around INR 74,000-77,000/t exw-Raipur, while Durgapur producers quoted at INR 73000-76,000/t exw. However, traders offered at around INR 72,000-76,000/t exw in both markets amid muted demand.

During the week, SteelMint recorded trade volumes of around 4,000 tonnes (t) of manganese alloys on the domestic market.

Responding to overseas enquiries, exporters offered at around $920/t FOB for 60-14 grade, up $30/t from last week, while prices for 65-16 grade were assessed at $1,020/t FOB, up $30/t w-o-w.

As a result of limited enquiries from overseas, silico manganese export prices fell. SteelMint recorded trade volumes in the export market at around 1,000 t amid low demand.

Factors keeping prices under pressure

• Fall in manganese ore prices: Low demand and production cuts for manganese alloys in the domestic market contributed to lower manganese ore prices, which impacted silico manganese prices.
  
  
• Silico manganese market remains bearish: The global silico manganese market remained bearish, which reduced liquidity and impacted prices in the domestic market.
  
  
• Subdued steel demand: Lack of demand and fluctuating raw material prices kept the Indian steel market sluggish. As a result, when it cames to reserving bulk volumes, many customers preferred to wait and see further weakening spot demand and prices. SteelMint's domestic steel billet index was at INR 42,350/t exw-Raipur on 15 November, down INR 21,50/t w-o-w.
  
  

Outlook
Silico manganese prices may fluctuate in the short term in the domestic market. Nevertheless, manganese alloy prices may be affected by steel production volumes and market dynamics.