Indian Silico Manganese Prices Surge Due To Domestic Demand! Will Export Demand Catch Up?

After hitting a record low in offers during the first week of May 2023, domestic prices of Silico Manganese found support and recorded a further hike compared to the previous week. Active domestic demand, attributed to the surged Steel prices has supported Silico prices. However, low bids for exports indicate no significant improvement, as assessed by OfBusiness.

Market Highlights

• Active Domestic Sales- According to trade experts, secondary Steel price recovery in the domestic market has somewhat improved domestic demand since the previous week. As a result, producers have received sufficient orders and accordingly raised their prices.

• Steel prices through the secondary mills surged by Rs 500-1,500/ton in a week, following which Silico Manganese prices increased by Rs 500-1,000/ton during the same duration.

• Domestic Prices- Silico Manganese (HC 60-14) current offers in Raipur hover at Rs 74,500-75,000/ton ex-works. This is an increase from the previous week when the prices were around Rs 73,500-74,000/ton ex-works. In Durgapur, it is currently offered at around Rs 74,000-74,500/ton ex-works through the producers’ end.

• Export Scenario- Exports demand remains weak as the disparity continues between bids and offers. As a result, no major deals have been reported recently. The current Silico Manganese (HC70, 65-16) offers are floating at around $990/ton FOB. However, the demand remains weak as buyers are seeking deals at lower prices of around $20-30/ton, mainly Indonesian buyers, as reported by trade sources.

• Stock Positions Lower- Since the producers have experienced active participation, the inventory positions are not up to the mark, and there is no selling pressure. Overall, the stock positions with them are negligible, and lifting positions are currently smooth due to less hope of price corrections.

Market Outlook

Participants believe that the Indian Silico Manganese prices are likely to change in line with the Steel price movement in the domestic market. Additionally, due to the surge in input costs resulting from an increase in power tariff charges in FY24, producers are not inclined to reduce prices and are likely to maintain their offers.

OFB’s Insight

While exports continue to face challenges with low bids, the overall Silico Manganese stock positions have maintained. Looking ahead, the prices are expected to slightly change, influenced by Steel price movements, and increased input costs.

Read more: Sluggish Demand And Falling Prices Impact Indian Flat Steel Market: Find Out Why Prices Are Plummeting

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