India: Silico manganese prices drop on limited domestic demand
Indian silico manganese prices, after remaining stable for a couple of weeks on improved demand, have now slumped by around INR 2,000/tonne (t) w-o-w due to subdued demand...
Indian silico manganese prices, after remaining stable for a couple of weeks on improved demand, have now slumped by around INR 2,000/tonne (t) w-o-w due to subdued demand. As per SteelMint's assessment, the current market price of silico manganese is at INR 93,100/t exw-Durgapur and INR 94,350/t exw-Raipur. However, some producers who are booked with future orders have kept their offers on the higher side, as per SteelMint's assessment.
Buyers hold back bookings on low steel prices
Steel mills are showing a resistance to booking the material as they are speculating a further reduction in silico manganese prices in the coming days. Domestic steel prices are on a downtrend due to muted demand. Thus, producers are refraining from booking large quantities. Owing to container shortage in the eastern belt, silico manganese smelters are supplying more volumes in the domestic market, leading to oversupply.
Delay in shipments due to container shortage
Indian silico manganese exporters are booked till October or more likely November. But they are unable to dispatch the material owing to severe container shortage. Exporters are bearing storage costs at ports due to the unavailability of high-priced containers.
"Producers who used to dispatch their material from Haldia Port are now transporting the same via trucks to Vizag Port (from Haldia) to get a container so that they can deliver the material to consumers on time and their (consumers) production will not be hampered," a silico manganese producer said.
China's silico manganese futures jump
Chinese silico manganese futures prices on the Zhengzhou Commodity Exchange (ZCE) surged by RMB 422/t ($65.32/t) to RMB 8,312/t($1,287/t) as compared to RMB 7,890/t ($1,221/t) on 27 Aug'21. This is because production in the Guangxi province is set to drop owing to "blind development" of the high energy-consuming and highly-polluting projects of the Chinese government. These projects are a cause for concern and may lead to closure of smelters to meet emmission targets in CY'21.
However, this has not yet affected the Indian market.
Producers keep eye on MOIL's manganese ore prices
Silico manganese smelters are waiting for MOIL's new price list for manganese ore for September deliveries. Considering decrease in seaborne manganese ore prices, it is expected that the company may decrease its prices for the month.