Ferro manganese prices were firm on tight domestic supply as buyers were emboldened by a stronger steel market.
SteelMint assessed ferro manganese 70% being offered at INR 54,000/MT (Ex-Durgapur) and INR 56,000/MT (Ex-Raipur).
Bullish sentiment was evident in trade. Continuous strengthening in steel prices pushed buyers back into the market. “Steel prices have been improving, so that is providing incentives for end-users to buy more material for their furnaces, especially when many were keeping very lean inventories,” said a producer in Durgapur. Markets saw further price support on tighter supply. Very few producers were offering ferro manganese in the market as most producers are overbooked with previous orders.
Most market participants said that price-rise in the domestic market is expected, due to tighter availability expected in the coming days. Also, demand from stainless steel sector is very good.
Ferro Manganese Export Prices High, Trade Thin
In The export market prices producers have increased their offers although trading activity was very low.
SteelMint learned from market sources that export offers for 70% min. is at around USD 810/MT FoB India (East Coast), and 75% min. is being offered at around USD 850/MT FoB India.
“The export market is not attractive at present, but good prices are achievable in the domestic market. So we are offering material in domestic market and not much exports,” opined a manufacturer source.
Prices are firm as domestic sales were more lucrative option for the manufacturers. Indian producers have expressed unwillingness to lower offers in light of tightening supply.
SAIL Tender
SAIL has invited a tender for tentative purchase of 25,050 MT of HC ferro manganese for its various plants. The company will require a projected quantity of about 25,050 MT HC ferro manganese during May’16-Aug’16. Due date of submission bids is 12 Apr’16 and the techno-commercial opening date is 13 Apr’16.
Exchange Rate : USD 1 = INR 66.5
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