Ferro Manganese market witnessed flat demand amid fiscal year-end selling pressure.
Ferro Manganese offers have continuously deteriorated over a period of time as its demand failed to pick up. Moreover, firm Manganese Ore prices have added an extra cost pressure on the Ferro Manganese producer.
“Ferro Manganese production has been low as realizing a good margin has been very difficult,” said a producer source referring to the high cost of raw material and low realization.
Moreover, any chances of the same to gain ground has been suppressed by year-ending selling pressure when the market participants are willing to remain low on inventories.
SteelMint assessed Ferro Manganese offers at INR 80,000/MT (Ex-Raipur) and (Ex-Durgapur).
“Demand from Europe has been a disappointment,” said another source expressing his concern over flat demand from overseas. China is bidding aggressively to lower the Ore prices but to no avail, he added further.
Export offers are assessed at USD 1,250/MT FOB India for 75% grade and USD 1,200/MT FOB India for 70% grade. However, some deals for small quantity has been concluded in Asian countries for higher prices than the above-mentioned offers.
On the future outlook, Ferro Manganese offers are expected to remain stable while any downward correction in prices cannot be ruled out.
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