Ferro manganese prices remained unchanged although plagued with poor demand, and any sustained recovery appeared unlikely as fundamentals remained bearish.
HC ferro manganese prices were at the same level as last week, amid a dearth of buying interest. Ongoing pessimism about the steel outlook pushed buyers away from procurement. Despite spot offers being at such a low level, sources said they were still finding it difficult to arouse buying interest. “The market is so bad. Trading is thin because buyers want to wait until prices go lower,” said a producer from Raipur.
Current price for ferro manganese 70% min is INR 41,000/MT (Ex-Raipur) and INR 41,500/MT (Ex-Durgapur).
MOIL Further Cuts Prices by 5-15%
The manganese alloys market is dull and looking into the market situation MOIL had earlier reduced prices further for Ferro Grade by 15% and Silico Grade 5%, effective from 1 Nov’15. Earlier in Oct’15 MOIL had cut prices of all Ferro Grades of ore (expect Fines) by 3% , Silico grade prices have been reduced by 5-10% while the prices of Manganese Ore Fines have been reduced by 5%. MOIL reducing ore prices does not necessarily mean producers can lower their offer levels, as Ferro manganese prices have corrected around INR 6,000/MT ; whereas MOIL have reduced Ore (Ferro Grade) prices by around INR 1,500/MT.
Ferro Manganese Export Market Holds Steady
Continuous slow demand in the ferro manganese market kept prices steady W-o-W.
Export offers for HC ferro manganese 70% min. is at around USD 640/MT FoB India (East-coast) and 75% min is being offered at around USD 680 /MT FoB India.
An Indian-based trader said material loading for export has been slow given fewer inquiries from foreign buyers. He further said, “Prices are likely to move downward or remain at this level for this month. It seems there is no chance for prices rising soon. It is just tough to make a deal. There is just absolutely no underlying demand.”
Market sources did not hold positive near-term views about the ferro manganese market as demand had dented. With the Diwali holidays next week, prices and market condition should remain unchanged.
Exchange Rate: USD 1 = INR 65.7
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