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. With this pace, imports are likely to cross 3 MnT in FY15 against 2.17 MnT in FY14.
Source: DGFT, SteelMint Research
Depreciating South African Currency
Depreciating South African currency (Rand) is one of the major factor that miners have managed to sell their ore at a lower price.
Source: Oanda Exchange Rates
“There is pressure from the imports actually. Imports are becoming cheaper because of the currency (Rand) depreciation in South Africa. From South Africa, we are importing about 70% material to India”, said MOIL official at one of the investors conference call.
MOIL (Manganese Ore India Ltd) is the largest manganese ore miner in the country, which has an annual production of about 1.15 MnT.
Falling Manganese ore production in Odisha
After Supreme court suspended iron ore and manganese ore mines, which are due for second renewal in Odisha, production has dropped significantly in the state.
Total Odisha manganese ore production in FY 15 (April- Nov) stood at 0.22 MnT against 0.71 MnT in FY 14 (April- Mar).
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