The mainstream offer price for High Carbon Ferro Manganese (70% min) in the Indian market stands at INR 78,000-80,000/MT for both Raipur and Durgapur. As Manganese Ore prices increase significantly, some ferro manganese producers have halted their production, while others have no option but to substantially increase their offers. However, trading activity is quite lacklustre as buyers are stunned by the steep jump in offers being quoted at present.
There is a major shortage of high grade Manganese ore in India (used in making Ferro Manganese) and MOIL also increased prices for ferro manganese grade ore by 30% for remainder of Q3 (Oct-Dec’16).
Market participants hinted that prices could rise further, as Imported Manganese Ore prices are so high and continuously rising. Australian 46% Manganese Ore is being offered at USD 8.5/dmtu CIF India for November shipment. This price has already been accepted in China and there continues to be a major shortage of high grade Ore in China, indicating a further rise in prices.
Ferro Manganese Export Market Remains Weak
The export market also saw very limited trading activity on no fresh orders. Offers for ferro manganese 70% min at around USD 900/MT FoB India (East Coast), and 75% min. is being offered at around USD 960/MT FoB India. Indian offers have not found acceptance in the export market as it is not price competitive, and South African offers are at a much lower level. Most Ferro Manganese producers have decided to stop production as the cost of production has shot up, and demand not picking up to exert further pressure on prices.
SteelMint assessed that with Coke prices also soaring, combined with the sharply rising Ore prices, it is inevitable that there could be temporary plant shutdowns in India until raw material prices come down.
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