Indian Silico Manganese Market Remains Under Pressure- Find Out Why

The Silico Manganese market in India is currently experiencing a downward price trend. This can be attributed to limited inquiries and lower bids from the domestic market, forcing producers to decrease their prices to remain competitive and attract more orders, as assessed by Ofbusiness. Let’s explore the price trend, factors contributing to the price decline, & current state of the Indian Silico Manganese market.

Silico Manganese (HC 60-14) Price Trends

• Last week, prices were at around 73,000-73,500/ton ex-works Raipur. This week, prices have declined. The current prices for HC 60-14 are:
  • Ex-works Raipur- Rs 72,000-72,500/ton
  • Ex-works Durgapur- Rs 72,000-72,500/ton

• Traders in both locations are offering the same material at around Rs 71,500-72,000/ton ex-works to liquidate their inventory.

Reasons Behind Price Decline

• Falling Steel Prices- Silico Manganese domestic market has been weakened by declining Steel (Billet) prices as they have dropped by Rs 500-1,000/ton in a week and about Rs 2,000-2,500/ton over the past month. It resulted in cautious buying behaviour, leading them to bid lower for raw materials such as Silico Manganese.

• Poor Export Demand- Exports play a key role in maintaining domestic market supply, since the export demand has been poor for a few months, it has unbalanced the Silico Manganese industry, resulting in a price drop.

Current Situation

• Export Offers- Silico Manganese export prices have experienced a downward trend. In the last two weeks, prices have dropped by around $40/ton. HC70, 65-16 current export offers stand at approximately $960/ton FOB India. As international demand remains poor, it is experiencing sluggish trends in Steel and raw material prices due to economic concerns.

1. Stock Positions- Given the poor export demand and limited domestic demand, suppliers are holding sufficient inventory volumes as compared to the average volume. As a result, some traders and large Steel mills are offering additional discounts for bulk orders.

Market Outlook

The prices are expected to remain under pressure, largely dependent on the movement of Steel prices. Market participants had anticipated price cuts from MOIL, India’s largest producer of Manganese Ore, but prices have remained stable. This unexpected development has created slight confidence among market players, suggesting that there may not be a significant further fall in Indian Silico Manganese prices. Additionally, lower import offers are not expected to significantly improve the Manganese market.

OFB’s Insight

The Indian Silico Manganese market is currently facing downward pressure due to limited inquiries and lower bids from the domestic market. Declining Steel prices have also contributed to the weak market conditions. The export market has experienced a decline in prices, and poor demand persists in the international market. Suppliers continue to hold sufficient inventories, and the market outlook remains uncertain, with prices likely to be influenced by Steel price movements.

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