Imported Manganese Ore market relatively steady on cautious sentiment as Rupee volatility still a factor
India's Manganese Ore Imports slipped in August to 187,800 MT from 208,200 MT in July. International Manganese Ore prices are pretty stable from last one week. BHP, Australia has reduced its Manganese Ore prices to China for October, 2013 shipment. The offer price for 45.5% Lumps is USD 5.35/DMTU CNF China and 48% Particle Ore is USD 5.15/DMTU CNF China which is 20 US Cents less than the earlier price. Price for South African semi-carbonate Ore ranges between USD 4.30-4.40/DMTU for October, 2013 shipments. As far as Indian market is concerned, there is a sudden shortage of Manganese Ore in the market because of delay in shipments, which may be temporary in nature. Manganese Ore stocks with the smelters are low and they are still adopting a cautious approach towards taking long import positions due to the looming uncertainty in the currency market which still prevails.
Manganese Alloys prices are still holding firm but pressure is mounting by the day and the prices may come down in the near term, unless there is a sudden change in demand due to global or local factors. India is running at less than 60% of the installed capacity and lot of furnaces either have increased their production or they are likely to increase the production which may also prompt Manganese Alloy prices to soften. SteelMint learned from sources that most of the Manganese Alloy smelters are under acute financial pressure, and in Vizag quite a few have converted all their operating Manganese furnaces to producing Ferro Silicon.
The Manganese Alloy industry in India is facing a tough challenge as it is totally dependent on external sources for raw material as well overseas demand for Sales, and the industry is also cursed with over-capacity in India which creates a supply overhang far outstripping demand.
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