Is Weak Demand Pushing Silicon Manganese Prices In India Down?

The Indian Silicon Manganese market is facing a challenging time because of weak demand, fluctuating prices of mid-sized Steel mills, and less buying interest for the prevailing Silicon Manganese offers. Both domestic and export demand is weak, putting pressure on the Indian Silicon Manganese market, ultimately leading to falling prices after reported a sharp surge during the first week of April 2023 on the increase in power tariff charges.

In this article, we will explore the current situation of the Indian Silicon Manganese market and whether the demand and prices will recover in the future or not.

What Are The Current Prices?

• Domestic Silicon Manganese Price: The prices of Silicon Manganese have dropped by Rs 1,000/ton, week-on-week. Offers for Silicon Manganese (HC 60-14) have been reported at around Rs 74,500-75,000/ton ex-works in both Raipur and Durgapur through the producers’ end. However, offers by the resellers are cheaper by Rs 500-1,000/ton to around Rs 74,000/ton ex-works, as industry participants reported to Ofbusiness.

• Exports Silicon Manganese Price: The export offer for Silicon Manganese (HC 70, 65-16) floated at around $1,030/ton FOB. According to one of the Raipur-based producers, demand continued to remain weak as there were no fresh deals recently by suppliers due to no major inquiries about exports.

What Is The Demand Scenario?

• Current Scenario- Inventories in the central region have seen a slight rise. The production of furnaces (ingot, billet etc.) is generally disturbed during the summer season. As a result, the demand for Silicon Manganese remains weak and is expected to remain low in the domestic market.

• Future Scenario- It is unclear when the demand and prices for Silicon Manganese will recover. With weak domestic and export demand, it is expected that the demand for Silicon Manganese is likely to remain low in the domestic market. Due to sufficient supply, the prices are expected to fall slightly further if demand continues to remain low, including exports.

OFB’s Insight

Falling Silico Manganese price per ton has put pressure on the Indian Silicon Manganese market, resulting in a decline in domestic and export demand. While the demand and prices are expected to remain low in the short term, they may recover in the future if the demand picks up.

Read more: Indian Scrap Market Observes Volatility On Varying Steel Market

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