Indian Silico Manganese producers have had to constantly raise their offers in-line with rising Manganese ore prices, both domestic and imported.
Silico Manganese 60-14 is being offered in the range of INR 61,000-62,000/MT (Ex-Durgapur) and INR 62,000-63,000/MT (Ex-Raipur). The market was largely quiet, however, and a degree of uncertainty remained. Export offers would also most likely go up in-line with rising domestic prices. However, no firm export offers were heard today after MOIL increased prices of various grades of Manganese ore by around 25-30% for remainder of Q3 (Oct-Dec).
Market participants expect that Silico Manganes prices will remain strong on account of increased raw material cost.
Raw Material Scenario
Imported manganese ore offers continue to rise amid strong demand from China and falling supplies from South African miners. Market participants report an increase of 50% in last few weeks. South African 37-38% Mn carbonated ore was heard concluded at USD 7/dmtu CIF China and there are no offers for India at the moment. Moreover, MOIL has also increased prices of various grades of manganese ore for October-December quarter effective from November 01, 2016. The price have been increased by 30% on the existing prices of all Ferro Grades of ore, while prices have been increased by 25% on all grades of Silico Manganese Grade (Mn 30%) and Silico Low Grade (Mn 25%) on the prevailing prices.
Another key raw material Met Coke, is also exhibiting an upward price trend as a result of rising Coking Coal prices. Import offers of the 64% CSR variant has risen to USD 305/MT CFR India from around USD 192/MT CFR India in Aug’16.
SteelMint assessed that having to deal with soaring raw material prices, Silico Manganese producers have no option but to increase their offers.
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