India: MOIL Raises Manganese Ore Prices by a hefty 45% for May 2020

India’s biggest Manganese ore producer – MOIL has hiked its prices today for all grades, by a gigantic 45%. Although, it was expected that the prices of the Manganese ore would escalate in line with the surge in the seaborne Manganese ore prices and limited production by the domestic mines, yet this hike will likely catch the domestic producers of Manganese Alloys off -guard.

In pursuance with the existing contracts for the Quarter April – June 2020, MOIL Ltd. has also offered to reduce the interest-bearing credit period from 15% per annum (1.25 % p.m.) plus GST to 9% per annum (0.75 % p.m ) plus GST and separate overdue interest period from @21% per annum ( 1.75 % p.m.) plus GST to 12% per annum ( 1 % p.m.) plus GST. This payment term shall be valid for the dispatches to be made for existing contract w.e.f. 01.05.2020.

The production of Manganese ore has been an issue in the global and domestic market amidst the restrictions imposed due to a lockdown in the major producing countries. The imported Manganese ore prices in Apr’2020 have also escalated by 37% M-o-M, which will likely have a bearing on the Manganese Alloys prices. However, such a steep hike could also receive a sharp resistance from the buyers in the domestic market due to the dull Steel market outlook in the near future.