Silico Manganese prices remained flat this week, with sources reporting no pick-up in inquires or offers; as market lacks direction.
In the domestic market, Silico Manganese prices were at the same level as trading remained weak. Silico Manganese 60-14 is being offered at INR 58,500/MT (Ex-Raipur) and INR 59,000/MT (Ex-Durgapur). Most sources described the market to be neutral with no significant upside or downside forces to move it either way. Market sentiment in India remained unoptimistic; with most seeing little chance of any upswing in prices. SteelMint learned from sources that trading activity was scant in the week gone by, as buyers steered clear of any transaction – awaiting clearer market direction, which is expected post-budget.
Earlier, MOIL announced its quarterly revision of Manganese ore prices for the next quarter July-August, 2014. The prices of all Ferro grades of ore have been reduced by 10% on the previous quarter price. The existing prices of all Silico Manganese grades and chemical grades of ore have been maintained. The prices of Fines have been increased by 7.5% on the previous quarter prices.
Total quantity of Silico grade Manganese ore offered by MOIL for the quarter (July – September) is approximately 64,000 MT, which is at a similar level to the 60,625 MT of Silico grade ore offered in the previous quarter.
Although, demand is generally poor during Q2, ore prices did not decline owing to rise of mining cost in the rainy season.
Export Market
Indian-origin Silico Manganese demand in the export market was visibly low this week. Silico Manganese 60-14 is being offered at USD 950/MT FoB East Coast of India and 65-15 grade is at around USD 1,060-1,070/MT FoB East Coast of India. SteelMint learned that the manufacturers of Manganese alloys are weighed down by deteriorating external demand as Europe and the Middle-East are on holiday.
On the future outlook, SteelMint assessed that demand was not strong enough to support any price hike. Most market participants believe that prices would remain at these levels over the next few weeks.
Exchange Rate: USD 1=INR 59.77
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