There is limited buying appetite for Ferro manganese in India with the underlying weakness in the steel market.
On weak buying activity, Indian producers of Ferro manganese have reduced their prices by INR 500/MT with deals now being concluded at INR 56,500/MT ex-Raipur and INR 57,500/MT ex-Durgapur. Affected by low demand, Indian producers have lowered prices in the domestic market in order to boost sales, but producers lament for continuous sluggish demand in the last two weeks.
“Each time we think the price is low enough, it manages to slide below that level,” remarked a Ferro manganese producer.
Traders were also reluctant to buy despite seemingly low prices for Ferro manganese.
“Nobody wants to buy now and be stuck with it, while, the market keeps tanking,” mentioned a trader based in Raipur.
SteelMint assessed that the Indian steel mills were reportedly cutting down on their Manganese alloy stock to maintain cash flows amid thin or negative margin.
Export Market
The export market is still quiet with low activity and now the pressure is on producers to make their offers more competitive. Export offers for 70% min grade is around USD 930/MT FoB India (East Coast) and 75% min is being offered at USD 1,000/MT FoB; unchanged W-o-W. Overseas demand for Ferro manganese is also really low.
“Demand for Ferro manganese is falling on all fronts, both foreign and domestic,” said a producer source in Durgapur.
SteelMint learned that most market participants hold a pessimistic outlook towards the future Ferro manganese market trend.
Exchange Rate : USD 1 = INR 61.40
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