MOIL is offering manganese ore at differential pricing to different states due to high inventories at mines.
MOIL (Manganese Ore India Ltd) is strategically following the international prices and adjusting their price in-line with international prices for states like West Bengal and Andhra Pradesh, which mostly rely on imported manganese ore. Demand situation in India for the ore has been poor since more than a year.
This deferential pricing is state-wise considering low off-take and prevailing imported manganese ore prices for India. Sources mentioned that the company is offering discount of INR 700-1,000/MT to different states. MOIL officials were not available for confirmation.
MOIL is a state owned and India’s largest manganese ore miner, which holds about 50% market share. The company releases price for its ore on a quarterly basis and has been consistently cutting its offers due to low demand.
Indian manganese ore production in FY15 was recorded at 2.24 MnT, out of which, MOIL’s contribution stood at 1.15 MnT.
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