Indian Silico Manganese Prices Show A Slight Uptick: Will The Trend Continue?

Silico Manganese (SM) is an alloy made by combining Manganese, Silico, and Iron. India is a significant producer and exporter of Silico Manganese. Its prices in India have been on a constant decline since the beginning of April 2023 with a total drop of Rs 3,000-3,500/ton. In recent trades, the prices have shown a slight uptick (by Rs 500-1,000/ton) in central India’s Raipur market. The price increase is attributed to the slight improvement in inquiries and buying from local mills, sources reported to Ofbusiness. In the article, let’s explore the same.

Current Market Scenario

• Improved Buying From Local Mills- Buying has improved from local mills in India as they previously held purchases due to a constant price drop. Earlier, they hoped that SM offers in the market would touch Rs 70,000-71,000/ton. With a price recovery in Steel products, Raw Material purchases have resumed, resulting in a slight price uptick in Silico Manganese.

• Sufficient Stock Availability- Despite the improvement in demand, the supply in the spot market remains sufficient, and no shortage has been reported for SM. However, since the orders have improved with the suppliers, they are eyeing better realizations and offers.

• Domestic Prices- The current offers for Silico Manganese (HC 60-14) in Raipur hover at Rs 73,000-74,000/ton. This is an increase from last week when the prices were around Rs 72,500-73,000/ton. In Durgapur, it is currently offered at around Rs 73,000/ton ex-works through the producers’ end.

• Export Prices- The demand for exports remains weak, and no major activity has been reported in recent times. The current offers for SM (HC70, 65-16) are floating at around $990-1,000/ton FOB. However, the demand remains weak as buyers are not in purchasing mode.

Market Outlook

Silico Manganese prices in India depend on Steel demand and price movement in the domestic market. With the current scenario of weak export demand and slightly low consumption from domestic Steel mills due to seasonal factors, there is less scope for significant price improvement. However, any major changes will depend on Steel demand and price movement in the domestic market.

OFB’s Insight

The slight uptick in Silico Manganese prices in India after a constant decline since April 2023 is a positive sign for the industry. However, the weak demand for exports and slightly low consumption from domestic Steel mills due to seasonal factors limit the scope for significant price improvement. The outlook depends on Steel demand and price movement in the domestic market. The industry must keep a close eye on the market dynamics and take appropriate actions to ensure its sustainability.

Read more: Sudden Rise In Indian Semi-Finished Steel Market Prices: Temporary Hike Or New Trend?

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