Here’s Why Indian Silicon Manganese Market Is Experiencing A Price Hike

The Indian Silicon Manganese market has witnessed a positive turn recently with a price increase. This increase can be attributed to the expected rise in input costs of producers due to the revised power tariff for the fiscal year 2023-2024 (FY24). In this article, let’s dive deep into the Indian Silicon Manganese market and explore the reasons behind the recent price hike.

Latest Prices In India

The current offers for Silicon Manganese (60-14) are hovering at Rs 75,000-76,000/ton ex-Raipur and Vizag. This price hiked by Rs 3,000/ton as compared to the last week. Similarly, in Durgapur, Eastern India, the prices hiked by Rs 1,000/ton to Rs 74,500-75,000/ton ex-works.

Why Have Silicon Manganese Prices Increased?

• Raipur’s Rising Input Costs

Producers in Raipur have reported that the input cost for manufacturing Silicon Manganese will increase for the fiscal year (FY24) due to the revised power tariff. The state government has announced a surge in power tariff by Rs 50 paise/unit (considering the surge in power charges by Rs 25 paise/unit for 33 kva & removal of rebate by Rs 25/ton for 132/220 kva), which will result in a surge in the cost of production by around Rs 1,500-2,000/ton w.e.f. 1 April 2023.

• Andhra Pradesh Government’s Power Tariff Hike

The government of Andhra Pradesh has also announced a hike in power tariffs for industrial consumers. This announcement has forced Silicon Manganese producers to keep their offers high, even though the current demand in the market is limited due to dull sentiments.

• Southern, Eastern, And Central India’s Plants

When it comes to the domestic market, Southern India, Eastern India, and Central India-based plants are the major producers of Silicon Manganese. Hence, the hike in prices by southern and central region-based manufacturers has also influenced the plants based in the Eastern region to hike their prices by around Rs 1,500-2,000/ton in the last 3-4 days.

Market Outlook

While inquiries are currently limited on revised offers, suppliers believe that plants will have to procure materials to continue production. Hence, spot trades are expected to slow down, but they will improve, and accordingly, the prices will find stability on a sharp surge.

Insight

The recent hike of Rs 1,500-3,000/ton in Silicon Manganese prices in the Indian market can be attributed to the revised power tariff and the government’s decision to increase the power tariff for industrial consumers. While the current demand is poor, suppliers believe that soon deals will be concluded on floated higher offers, which signifies firmness of prices in the near future.

Read more: Why Indian Steel Prices Remained Unstable In Week 13 Of 2023?

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