Ferro Manganese prices remain stable W-o-W, as demand continues to be under pressure countered by low production level.
Market sources reported that traders are striving towards maintaining low stock levels on account of GST implementation in the country. “Being unsure of the new tax regime, none of the traders are willing to take risk by having their inventory stocked, as they might have to bear some portion of the tax component,” mentioned a producer source while pointing towards the prime reason for depleting demand.
Moreover, scarcity of high grade Manganese ore along with elevated offers of imported Manganese Ore has also restricted Ferro Manganese production in India.
SteelMint assessed Ferro Manganese 70% was stable at INR 79,000/ MT (Ex-Raipur) and down marginally at INR 77,000/MT (Ex-Durgapur).
Demand from overseas market is reportedly robust, as one market source revealed: “it is the export market where we are concluding better deals.”
Albeit improved demand, the export offers are kept unchanged at USD 1160/MT FOB India for 70% grade and USD 1250/MT FOB India for 75% grade, as producers fear that hike in price might not get acceptance.
On the future outlook, market participants are expecting a stable market throughout this month, until GST is implemented.
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