The Ferro Manganese market, which has been quiet for months with limited trade and production of the alloy, leaving prices unchanged.
SteelMint assessed that Ferro Manganese is being produced at a low scale due to scarcity of high grade Manganese Ore in India. Ferro Manganese is being offered at INR 84,000/MT (Ex-Durgapur) and INR 86,000/MT (Ex-Raipur).
The overseas market is accepting lower offer price for Ferro Manganese as of now. This has led the Indian Ferro Manganese producers to lower their prices further. Current export offers for Ferro Manganese grade 70% and 75% are at around USD 1,250/MT and USD 1,310/MT FOB India respectively.
Most market participants are of the view that the current price level in India is likely to remain unchanged for rest of the month because there is no apparent demand and supply is restricted, balancing the effect on pricing mechanism.
SAIL Tender
Steel Authority of India Limited (SAIL) is the India’s largest steelmaker and produces a variety of steel and iron products, has released an Expression of Interest for tentative purchase of 4,200MT HC Ferro Manganese for its Bhilai Steel Plant, Chhattisgarh. The material is required for the period of two months i.e. Feb’17 to Mar’17.
Market participants reckoned that Ferro Manganese prices could rise, once the SAIL tender gets concluded as Ferro Manganese production continues to be low due to low availability of high grade Manganese Ore in the Indian market.
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