IRON and STEEL
Indian Silico Manganese prices are under pressure in line with moderate demand in the domestic as well as overseas markets.
Prices have corrected marginally with the help of reduction in Manganese Ore prices by MOIL and the plunging global Manganese Ore offers. MOIL decreased prices of various grades of Manganese Ore by 7.5 percent on Sunday for the month of June.
Demand in the domestic market remains moderate. Meanwhile, inquiries are developing in the global market. Producers reported that Silico Manganese is available from Zambia and Malaysia at much lower prices than being offered by the Indian suppliers, Indian producers are reportedly struggling in the export market. A few market participants believe that the only a few producers are producing 60-14 Grade in Durgapur, while many have switched to lower grades to keep up with falling prices.
Silico Manganese offers for 60-14 grade in Raipur are at INR 65,500/MT Ex-Raipur and in Durgapur deals are being concluded at around INR 67,000-67,200/MT Ex-Durgapur. Since, last week, INR fluctuated a lot with respect to USD, which provided the producers with the scope of reducing prices. Prices are stable W-o-W basis in the export market owing to lackluster demand. Producers are offering Silico Manganese 60-14 grade in the range of USD 930-940/MT and grade 65-16 is being offered at USD 1040-1050/MT in the export market.
On the future outlook, market sources are of the view that Silico Manganese prices are expected to maintain such levels in line with the falling Manganese Ore prices, and the producers are afraid that the buyers may demand the material at much lower prices owing to a bearish steel market.