These are some tough days for the Indian Manganese ore market. Falling Manganese alloy prices in Indian and global market, and consistent manganese ore imports from South Africa are keeping demand for Indian Manganese ore weak. As such, Indian manufacturers are waiting for Manganese Ore India Ltd’s (MOIL) next quarter prices (April-June’15), hoping for them to come down.
In the last quarter, MOIL had cut prices down by 5-7.5%, under similar circumstances that prevail at present. Mn alloy prices had turned cold and cheaper imports from South Africa was favored by manufacturers.
Dull Ferro alloy Market
Trending now, the Indian Ferro alloy market has been very dull for the last few months. Silico Manganese and Ferro Manganese prices have dropped extensively.
“Indian Mn Alloy prices have corrected over INR 5,000/MT (USD 80) in last 3 months and INR 9,000/MT (USD 144) in last 6 month. Although Mn ore and Coke prices have not corrected in the same proportion. Manufacturers are making losses at these prices. Either Manganese ore prices have to come down drastically or we have to cut production.”said a Manganese alloy manufacturer based in Chhattisgarh.
“Domestic offers for Manganese ore from Balaghat region remain unchanged, although the demand is low”, reported a miner from the region.
Current prices at Balaghat are as below:
30 Mn+ = INR 5,500 ( USD 2.9/dmtu)
38-40 Mn = INR 8,500 (USD 3.5/ dmtu)
44 Mn + = INR 10,500 (USD 3.8/ dmtu)
All prices inclusive royalty
Karantaka E-Auction observed low interest in buying
India’s state-owned trading company MSTC, which had conducted the e-auction of Manganese ore in Karnataka on 13 Mar’15, fetched a total of 5 bids from Goa, Chhattisgarh, Andhra Pradesh & Karnataka producers. About 3,968 MT of Manganese ore was put on auction.
The Manganese (Mn) content of the material offered ranged from 21, 27 and 31 and Iron (Fe) content was in the range of 24-30%.
31 Mn , Fe 24-26 = INR 5,312 (USD 2.74/dmtu)
27 Mn, Fe 28-30 = INR 4,135 (USD 2.45/dmtu
21 Mn; Fe 30-32= INR 1,180 (USD 0.89/dmtu)
Indian Manganese Ore Imports likely to cross 3 MnT in FY15
Indian Ferro alloy manufacturers have raised import of Manganese ore significantly owing to mining ban in Odisha and declining prices in the global market. According to data maintained by SteelMint, it is assessed that imports have already crossed 2.8 MnT during Apr’14-Jan’15. At this pace, imports are likely to cross 3 MnT in FY15 against 2.17 MnT in FY14.
South African currency ‘Rand’ has depreciated from 11.2 /USD to 12.4/USD in last six months. Imports from S. Africa are at USD 2.85/dmtu FOB currently, which were at 2.95/dmtu- 3.10/dmtu FoB six months back.
MOIL is the largest Manganese ore miner in the country, producing about 11.5 lakh tonnes pa i.e 50% of India’s total production. Given the scenario of increased imports and poorly faring Mn alloy prices, MOIL is likely to be prepared to put out its Ore at globally competitive prices in the next quarter.
Find out the future of Ferro alloys industry in India, along with opportunities for trade from experts at ‘International Ferro Alloys Trade Meet’ to be held in New Delhi on 17-18 April’15.
Meet industry leaders from Hira Power, Sarda Energy, Rohit Ferro-Tech, Shyam Group, VISA Steel, Gerdau Steel, CRU Group among many others.
Ahmedabad Metal & Alloys | AVRA Commodities | CRU Group |Geo-Chem Laboratories | Gerdau Steel | Hira Power & Steels | Jindal Stainless | Krysstal Impex | Lloyds Group | Maalu Ferro Alloys | Mironda Trade & Commerce | Monnet Ispat | MS Mining |Oswal Minerals | Prithvi Ferro Alloys | Rally Tech Services | RJH Trading | Rohit Ferro-Tech | SAR Exim | Sarda Energy & Minerals| Shyam Group | Sojitz India | SR Ferro Alloys | TPM Solicitors & Consultants | VISA Steel | SAL Steel
Join them and 100 others from around the world at one of India’s largest gathering of Ferro industry.