The present doesn't look too shiny for Indian Silico Manganese and the future is unpredictable. Low export offers and domestic prices together are giving SiMn market a hard time.

As Indian Silico Manganese export prices drop on low demand from European & Japanese buyers, current offers for 65-15 grade Silico Manganese are assessed at USD 800-810/MT FoB Indian main ports, and for 60-14 grade are assessed at USD 730-740/MT FoB.

In addition, an exporter based in the eastern region said,

Falling global steel prices and depreciating currency have led Indian manufacturers to cut export offers. Japanese spot prices for 65-15 corrected to USD 830/MT CIF; also, European domestic SiMn prices fell to USD 880-890/MT (Ex- works) this week.

Indian Domestic prices correct by INR 500/MT

low exports and high stock levels have put pressure on domestic prices

Market sentiment in India remains bearish and any upswing in prices till March is unlikely. 60-14 grade is currently being offered at around INR 45,000-45,500/MT (ex-Raipur) and INR 46,000/MT (ex-Durgapur). Indian producers reasoned that surplus supply and weak steel demand were the two factors constraining prices.
According to a big producer from Raipur, low exports and high stock levels have put pressure on domestic prices. 60-14 SiMn prices are at around INR 45,000- 45,500/MT (Ex- Raipur) and INR 46,000-46,500/MT (Ex- Durgapur) based on plant to plant.

Amidst this, what remains for the Indian Ferro alloy manufacturers is to wait for Steel Authority of India (SAIL), India's largest steel producer, to float its purchase tender for Silico Manganese for next quarter. Recently SAIL floated a tender for purchase of 23,500 MT Ferro Manganese for May-August'15 deliveries. SAIL's big purchase of SiMn through open tender might give SiMn the upward push it is looking for.

A comprehensive mapping of Ferro alloys shows that FeMn topped the export charts for 2014, with 930,724 MT exported; 44% exported to Iran. FeSi followed with 157,000 MT exports; highest 18% exported to France. SiMn lagged behind with only 36,900 MT being exported; highest 21% exported to Japan.

• [Editor:Sophie]