Indian Silicon Manganese Producers Reported Change In Domestic Inquiries

A key ingredient in the production of steel, silicon manganese is used as a deoxidizer and an alloying element in the production of steel. Its prices have a direct impact on the cost of steel production. Any change be it a positive change or a negative change affects steel market accordingly.

The Indian silicon manganese market has seen a constant fall in prices since the beginning of January 2023.

Reasons For Price Corrections

The decline in prices is attributed to several factors. One such factor is sluggish global sentiments, which have affected domestic prices. Additionally, overseas buyers have been seeking lower prices for silicon manganese, which led to a sharp fall in domestic prices.

Furthermore, domestic demand for steel has also been moderate, with limited purchase inquiries at prevailing offers. This has contributed to the decline in silicon manganese prices. The prices of silicon manganese fell by Rs 2,000-3,000/ ton in a week. Overall, they have decreased by approximately Rs 5,500-6,000/ton since 1 January 2023, in central and east India’s, Raipur and Durgapur markets. These markets are known as the major producers of silicon manganese and supply across India.

Current Offers

Fresh offers for silicon manganese (HC 60-14) have been reported at around Rs 76,000-77,000/ton ex-works Raipur and Rs 75,000-76,000/ton ex-works Durgapur, excluding GST.

Insight

As per silicon manganese suppliers, the domestic price movement of silicon manganese will largely depend on export inquiries as well as steel price movements in the Indian market. These are slightly weak as a majority of participants are waiting for the Union Budget announcement on 1 February 2023. There is hope that the government may announce amendments for import taxes, thus keeping buyers away from taking positions.

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