Rebounding Ferro Manganese demand has instilled a bullish sentiment among Ferro Manganese producers.
Ferro Manganese producers were unable to raise their offers on a persistent lack of demand for the alloy despite seaborne Ore prices rising. However, demand has returned to the market from buyers that have run down inventories and are looking to replenish their stocks before Ferro Manganese prices rise on the back of costlier Manganese Ore.
Moreover, a rise in imported Manganese Ore prices also lent support to the Ferro Manganese offers climbing up.
“Buyers kept waiting on the sidelines in anticipation of a further fall, but have been caught off-guard as Ore prices started rising on a weekly basis,” said a producer source referring to the upsurge in Ferro Manganese inquiries. Moreover, he also hinted at a rise in prices of the same in near-term is inevitable.
Ferro Manganese offers are assessed to be at 73,000/MT (Ex-Durgapur) and (Ex-Raipur). However, few producers have started offering at higher levels.
“The overseas market has reportedly been lacking in activity but we managed to conclude deals,” said another source citing restricted buying from seaborne purchasers.
The export offers are assessed at USD 1075/MT FOB India for 70% grade and USD 1150/MT FOB India for 75% grade.
On the future outlook, market participants are of the view that Ferro Manganese prices may correct upwards on upcoming demand coupled with rising Manganese Ore prices.
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