Silico Manganese Prices Decline After Rising Up To 8% In August
19 days ago
Mild Steel
Mild Steel

Silico Manganese Prices Decline After Rising Up To 8% In August

In August, Indian Silico Manganese prices soared by Rs 5,000-6,000/ton, driven by strong demand and Steel prices. However, September saw a modest Rs 500-1,000/ton decline in key locations.

In August 2023, the Indian Silico Manganese market witnessed an impressive rally in prices, driven by a Steel price surge and robust domestic and export demand. Prices surged by a substantial Rs 5,000-6,000/ton (7% to 8% or $60-72). However, as we stepped into September 2023, the market experienced a period of stability followed by a slight dip of Rs 500-1,000/ton in key locations like Raipur and Durgapur.

Upward Surge

The beginning of August saw a significant uptick in Silico Manganese prices. This rally was fueled by robust demand, rising inquiries, and bulk deals happening domestically. Producers and traders alike were optimistic as the market seemed poised for further growth.

Current Price Scenario

  • Raipur: As of now, 60-14 grade Silico Manganese prices have been reported at Rs 69,500-70,000/ton, marking a decline of Rs 1,000/ton week-on-week.
  • Durgapur: The prices from local producers are reported at Rs 69,000-69,500/ton. These prices are ex-words, excluding taxes and advance payment terms.
  • Note: Producers in Raipur quoted prices at around Rs 70,500-71,000/ton ex-works. However, after negotiations, the material is available at approximately Rs 69,500-70,000/ton, as assessed by OfBusiness.

Factors Impacting Prices

Several factors have contributed to the slight decline in Silico Manganese prices:

  • Price Negotiations & Disparity: In a bid to attract buyers in the domestic market, traders offered Silico Manganese at prices lower than manufacturers offered. Buyers seized the opportunity to negotiate aggressively. Producers, citing high production costs, were reluctant to lower prices.
  • Meanwhile, resellers, who had stocked up when prices were surging, offered competitive prices to reduce their inventory. This disparity in pricing has created a temporary sluggish market dynamic.
  • Steel Price Decline: The Indian secondary (mid-sized) Steel market experienced a drop in demand, primarily due to limited buying interest in festive mood and the healthy bookings made in August. As a result, Steel prices, including MS Billets, witnessed a decline of Rs 1,000-1,500/ton in September.
  • Stable Raw Material Prices: Imported Manganese ore prices remained relatively stable in September, thanks to stable raw material costs and subdued demand from major Manganese alloy-producing regions. Despite a decline in Steel prices and demand, Silico Manganese producers were influenced by rising Iron Ore and Coal prices to keep their offers on the higher side. The price of grade Mn 37% (Lumps, South African origin) stood at $3.70/dmtu CNF India.

Market Outlook

Despite the limited demand and recent price corrections, the market is not expected to witness a sharp tumble in prices. Suppliers have sufficient bookings, and the influence of higher raw material prices is likely to encourage producers to maintain their prices with marginal changes in spot demand. 

The major price movements in the coming days will largely depend on export demand. While there may be fluctuations in the short term, experts in the industry believe that the continued support in Indian Steel demand is likely to prevent significant price drops in the Silico industry.

OFB’s Insight

The Indian Silico Manganese market experienced a notable surge in August, followed by a slight dip in September due to factors like pricing disparities and stable raw material costs. Despite this, the market is expected to remain relatively volatile in the short term, with export demand playing a pivotal role in future price movements.

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