India: Ferro Manganese market flat on muted demand

Indian High Carbon Ferro Manganese market not expected to recover in the near-term as demand continues to wane.

There is limited or no activity in the market, and these are worrying times for the Ferro Manganese industry, as Ferro Manganese producers are working on weaker margins with the cost of procuring raw material (Imported Manganese Ore) increasing, and demand from Steel mills remains negligible. As a result, most producers have opted to produce Silico Manganese instead. In Raipur HC Ferro Manganese is trading in the range of Rs 52,500 – 53,500/MT (Mn 70%). In Durgapur, currently Ferro Manganese is not being produced. SteelMint assessed that the cost of producing Ferro Manganese is higher in comparison with Silico Manganese, as high-grade ore is required to produce Ferro Manganese, which needs to be imported. Moreover, Ferro Manganese needs to be mixed with Ferro Silicon for the Silica properties, owing to the financial constraints Steel mills prefer to use Silico Manganese. A Ferro Manganese trader shared his views on the current market scenario, he said, “Due to the Rupee volatility there is immense confusion in the market, with regard to prices.”

International steel prices have also been on a downward trend in the current year, reflecting the weakness in major Manganese Alloy consuming regions such as China, U.S. and the European Union.  In the export market, Indian HC Ferro Manganese is being offered at the same levels, HC Ferro Manganese 70% min. is being offered at $ 890/MT FOB India (East-coast), and HC Ferro Manganese 75% min. is being offered at around $ 935/MT, FOB India (East-coast). The lingering uncertainties in the market have kept foreign buyers on the sidelines, with limited or no deals done.