2023 Marks Negative For Indian Silicon Manganese Industry

The Indian silicon manganese market has been facing a significant decline in prices since the beginning of 2023. Silicon manganese is an essential component in the production of steel, and its prices have a direct impact on the cost of steel production.

Reasons Behind Significant Price Drop

The decline in prices is primarily due to subdued global sentiments that have affected domestic prices. The overseas market has been seeking lower prices for silicon manganese, leading to a sharp fall in domestic prices.

In addition, the domestic steel demand has also been moderate, with limited purchase inquiries at prevailing offers, further contributing to the decline in silicon manganese prices. Indian steel prices of mid-sized mills have seen a decline of up to Rs 1,500/ton in a week. This has weighed on silicon manganese prices.

Since the start of 2023, the prices of silicon manganese have decreased by approximately Rs 5,000-6,000/ton in the major producing markets of Raipur and Durgapur.

Prevailing Offers

Fresh offers for silicon manganese (HC 60-14) have been reported at around Rs 77,500-78,000/ton ex-works Raipur and about Rs 78,000/ton ex-works Durgapur, excluding GST. These prices remain under pressure due to the uncertain sentiments in both domestic and international markets.

Future Prospects

As per the market experts, the domestic price movement of silicon manganese will largely depend on export inquiries as well as steel price movements in the Indian market. The market participants are currently in a wait-and-watch approach, waiting for stability in the market before taking positions.

Read more: Performance Of Indian Steel Market In The Fifth Week Of 2023