Indian Silico Manganese Prices Remain Strong Despite Softening Billet Prices

Prices of silico manganese remain supported even as steel billet prices decline, falling by up to Rs 1,000/ton in the last 3-5 days.

Generally, silico manganese is impacted by the price movement of steel commodities including MS Billets. However, due to persistent slight supply shortages, major producers based in Raipur, Durgapur, and Vizag are maintaining high prices. The current prices are about two-year high compared to the previous high offers of May 2023.

Industry sources reported that the suppliers have received significant orders at rising prices and, hence, are not looking for a significant downtrend in the market.

Meanwhile, steel mills, the major consumers of silico manganese, anticipate that prices should not find more support. Wanting them to soften in the coming days, they are holding further major bookings at the prevailing (higher) prices and placing orders as per necessity.

Prices of Silico Manganese in Major Locations

• Current offers for 60-14 silico manganese are reported at around Rs 72,500-73,000/ton in Raipur, up by Rs 2,000-2,500/ton week-on-week, and a total of around Rs 7,500/ton month-on-month from the low levels recorded during the third week of March 2024.

• Similarly, prices in Durgapur for the same grade material stand at Rs 71,500-72,000/ton, showing an uptrend of Rs 1,500-2,000/ton week-on-week, and about a Rs 6,500-7,000/ton rally on a month-on-month basis.

Why are the Prices Trending High?

According to industry participants, a key factor for the spurt in prices is the imbalance of supply and demand, as supply has been less than demand for the past few days.

Producers  reported running their plants at a slight low capacity, and seasonal low productivity has led to a surge in the price range.

Additionally, since traders were also operating with low stock levels, a sudden improvement in demand from both traders and steel plants has resulted in a constant surge in prices over the past 3-4 weeks.

Furthermore, the ongoing shortage of manganese ore globally has resulted in a surge in import offers for Indian buyers. As a result, input costs for producers have risen, influencing them to quote higher prices to pass on rising input costs. Manganese ore is a key component for silico manganese production, and any change in manganese directly impacts producers’ margins.

In response to supply constraints, imported manganese ore prices surged up to 10% in April, with Gabonese (44%) up $0.50/dmtu, Australian (46%) up $0.55/dmtu to $4.75/dmtu, and South African lumps (Mn 37%) up $0.20/dmtu to $4.35/dmtu. Limited supply by major producers due to production constraints and a temporary suspension in operations by major miners led to a surge in prices.

The surge of 3-6% in MOIL’s (Manganese Ore India Limited) April prices affected the input costs. With a 50% market share, MOIL is the largest producer of manganese ore in India.

Will the Silico Manganese Price Hike Sustain?

Participants believe that the prices of silico manganese are less likely to fall rigorously as orders are good with suppliers. However, a sharp surge in prices is also less likely due to measured demand on higher price range. Hence, slight changes in prices can be observed in the short term.

Major changes in the industry hinge on the global market and any sharp change in the domestic steel market.

Get latest steel news, market updates, and price trends on OfBusiness.