Ferro alloys market mood seen upbeat in Feb

Indian manganese alloys market may maintain a positive
momentum in February 2013. Factors which make both manufacturers & traders optimistic
about the market in the near term are as follows:

* Shortage of readily sellable ferro alloys

* Improved enquiries for exports though not as high as Q4 of
2012

* Lack of interest to keep inventories ahead of the closure
of financial year 2012-13

Silico Manganese

Domestic grade 60/14 is quoted at Rs 53,500-54,000/MT Ex
works, i.e. almost unchanged from the previous week.

Export grade 65/15 is currently quoted at $1080-1100/MT FOB
Vizag. According to a top official from a leading export oriented company in
Kolkata, “A deal for SiMn 65/15 was achieved at $1095/MT FOB i.e. slightly higher
from the previous deal of $1080/MT last week.”

Speaking about the market scenario he said, “Prices are
moving up but at the same time the fluctuation in INR & USD is making our
realizations low. So, even if prices are moving up, the depreciation in Dollar
is squaring off the net gain. Therefore, we will not lower our offers below
$1100 FOB for 65/15 at present & we expect prices to go up if Dollar keeps
tumbling.”

Ferro Manganese

Domestic grade Ferro manganese prices remained unchanged
with HC 70% FeMn quoted at Rs 52,500/MT.

According to a top official from a manufacturing firm in
Raipur, “Market will retain its positive momentum in February & manganese
alloys prices should move up.”

Speaking about a recent tender he added, “Few days back a
company had floated a reverse tender of 300 tonnes for Ferro manganese but no
seller was finalized.”