Indian Manganese ore demand remains weak over falling Manganese alloy prices in Indian and global market. Indian manufacturers are waiting for Manganese Ore India Ltd’s (MOIL) next quarter prices (April-June’15), which are expected to come down. MOIL had reduced prices by 5-7.5 % in previous quarter.
MOIL is the largest Manganese ore miner in the country and produces about 11.5 lakh tonnes pai.e 50% of India’s total production.
Domestic Manganese ore prices in Balaghat were unchanged amid lack of demand and hesistant sentimentsof buyers. Private owners in Balaghat are currently facing pressure in the market as most end users prefer imported Ore. Also the Indian Ferro alloy market has been very dull for the last few months. Silico Manganese and Ferro Manganese prices have dropped extensively.
“Domestic offers for Manganese ore from Balaghat region remain unchanged, although the demand is low”, reported a miner from the region.
“Indian Mn Alloy prices have corrected over INR 5,000/MT (USD 80) in last 3 months. Although Mn ore and Coke prices have not corrected in the same proportion. Manufacturers are making losses at these prices. Either Manganese ore prices have to come down drastically or we have to cut production.” said a Manganese alloy manufacturer based in Chattisgarh.
Current prices at Balaghat are as below:
30 Mn+ = INR 5,500 ( USD 2.9/dmtu)
38-40 Mn = INR 8,500 (USD 3.5/ dmtu)
44 Mn + = INR 10,500 (USD 3.8/ dmtu)
All prices inclusive royalty
Karantaka E-Auction observed low buying Interest
India’s state-owned trading company MSTC, which had conducted the e-auction of Manganese ore in Karnataka on 13 Mar’15, fetched a total of 5 bids from Goa, Chhattisgarh, and Andhra Pradesh & Karnatakaproducers. About 3,968 MT of Manganese ore was put on auction.
The Manganese (Mn) content of the material offered ranged from 21, 27 and 31 and Iron (Fe) content was in the range of 24-30%.
31 Mn , Fe 24-26 = INR 5,312 (USD 2.74/dmtu)
27 Mn, Fe 28-30 = INR 4,135 (USD 2.45/dmtu
21 Mn; Fe 30-32= INR 1,180 (USD 0.89/dmtu)
Indian Manganese Ore Imports likely to cross 3 MnT in FY15
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. At this pace, imports are likely to cross 3 MnT in FY15 against 2.17 MnT in FY14.
Source: DGFT, SteelMint Research
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