A bearish market for the commodity restricted the producers from raising their offers to cover up the production cost.
Ferro Manganese producers were unable to raise their offers in line with elevated Manganese Ore prices, on a persistent lack of demand for the Alloy.
“Demand for Ferro Manganese in the market is low but constant,” said a producer source referring to its lacklustre demand.
SteelMint assessed Ferro Manganese prices at INR 73,000/MT (Ex-Durgapur) and (Ex-Raipur), however, sellers are not keenly concluding deals as they expect higher prices.
A source mentioned that at such levels, the margin left with the producers are way too low to consider, as the cost of production has increased owing to high ore price.
Inquiries for Manganese Ore in China is high, quite opposite to the general anticipation. Low inventory in China has prompted the producers to purchase Ore irrespective of their upcoming festive season. Hence, a bullish sentiment continues in the region causing the price of the commodity to rise globally.
A source revealed to SteelMint that Chinese steel mills have been buying Manganese ore in higher quantity to cover their requirement throughout the holidays, which they will provide to the ferro alloy producers and use the alloys after conversion.
The Ferro Manganese export market witnessed better activity and hence offer levels were increased.
“Demand for Ferro Manganese from Europe has moderately increased with a stable market for Manganese Alloys in the region from past few weeks,” said a source elaborating on the offer price for the commodity.
SteelMint assessed export offers for Ferro Manganese 70% min. is at around USD 1150/MT FoB India, and 75% min. is being offered at around USD 1250/MT FoB India.
Market sources reckon that demand is unlikely to rise, but prices are expected to remain firm.
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