- Buyers book only 15% of offered quantity
- Buyers mostly prefer lower grades (20-30%)
Sandur Manganese & Iron Ore Ltd (SMIORE) had conducted an auction for around 33,075 tonnes (t) of manganese ore (Mn: 20-46%, -10-100mm) on 19 July 2024. According to sources, around 5,040 t (Mn: 20-30%) were booked at INR 2,510-9,070/t, while nearly 28,035 t remained unsold, as per data compiled by BigMint.
Only around 15% of the offered quantity was booked, reveals data.
Key observations:
Bids witness decline m-o-m: Data revealed that the bid prices for Mn: 28-30% in the auction in June 2024 were recorded at INR 9,600/t ($115/t), while those in July 2024 were at INR 9,070/t ($108/t), diminishing by INR 530/t (6%).
The lacklustre participation in Sandur’s manganese ore auction can be explained by the current market instability of the manganese alloys in the domestic market and the cautious approach taken by decision makers.
Notably, silicon manganese (60-14) prices in India fell by INR 12,300/t ($147/t) to INR 71,740/t ($857/t) exw-Vizag in July.
Bids witness marginal hike compared to base price: Notably this auction fetched an increase in the base and bid prices as the latter saw an overall appreciation by 4.15%.
- For instance, the Mn: 22-24% grades were set at a base price of INR 4,810/t ($57/t), and the bidding was seen at a weighted average price of INR 6,990/t ($80/t), which rose by around 45%.
- Another grade, Mn: 24-25%, had its base price at around INR 7,050/t ($84/t) which ended at a weighted average bid price at around INR 7,290/t ($87/t), up by INR 240/t ($3/t)
- However, other grades of manganese ore (20-22%; 28-30%) remained unchanged towards its base v/s bid prices.
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