MOIL cuts manganese ore prices by 10-15% of various grades for Q2.
Manganese Ore India (MOIL), the country’s largest and government owned manganese ore producer with an annual production of 11.5 lakh MT, has cut prices of various grades by around 10-15% for the quarter Jul-Sep’16. Prices have been cut on the backdrop of falling manganese alloys prices in Indian and tumbling imported Manganese Ore prices. MOIL’s Manganese ore prices have been cut only marginally as cost of production increase and volume of production decreases due to the onset of the rainy season .
The prices of all ferro grades of ore have been decreased by 10%, silico grade prices have been decreased by 15%, while the prices of manganese ore fines have been decreased by 15%, from previous quarter’s prices.
In the last quarter MOIL had increased prices by almost 50%. MOIL Ltd. has increased prices for the Q1 on expectations of high offtake of its material and improved prices of manganese alloys. In FY16 Q2 (Jul-Sep’15) MOIL had cut prices of various grades by around 3-12%
MOIL Manganese Ore Price Comparison between Q1 FY17 & Q2 FY17
| Particular | Grade/Size | Q2 FY17 (Jul-Sep’16) | Q1 FY17 (Apr-Jun’16) |
| Ferro Grade | 48% Mn, 4.8% Fe Lumps | 10,510 | 11,678 |
| Ferro Grade | 37.5% Mn, 7.5% Fe, Lumps | 5,647 | 6,644 |
| Silico Grade | 30% Mn, 8% Fe, Lumps | 3,817 | 4,490 |
| Silico Grade | 25% Mn, 7% Fe, Lumps | 2,099 | 2,469 |
| Fines | 30% Mn, 6.5% Fe, Fines | 1,961 | 2,307 |
Prices in INR/MT
Prices excluding royalty of 5% and other taxes
Indian Manganese Alloy Market on a Downtrend
The Indian steel market is under pressure and so is the ferro alloy market, resulting in the Indian manganese alloy producers to lose interest in procuring the raw material.
Silico manganese and ferro manganese prices have extensively gone down in the last 3 months.
Silico manganese prices in Week 15 (4 Apr-10 Apr’16) was INR 57,000/MT (Ex-Raipur) and INR 55,000/MT (Ex-Durgapur). In the current Week 27 (20 Jun-26 Ju’16) silico manganese prices is INR 44,000(Ex-Raipur) and INR 43,500-44,000 (Ex-Durgapur).
Ferro manganese prices in Week 15 (4 Apr-10 Apr’16) was INR 56,000/MT (Ex-Raipur) and INR 54,000/MT (Ex-Durgapur) whereas, in the current week 27 (13 Jun-19 Jun’16) ferro manganese prices is INR 45,000 for both Raipur and Durgapur.
Imported Manganese Ore Market
Spot prices of imported manganese ore have been on a declining trend and Indian manganese alloy producers are not willing to commit, in line with tumbling prices of manganese alloys in India due to a lack of support from the steel sector.
Currently, Australian manganese ore lumpy grade 46% price is being offered at around USD 3.3/dmtu CIF India. South-African 36-37% carbonated ore is being offered at around USD 2.8-2.9/dmtu and Gabon 44% grade manganese ore is at USD 3.1/dmtu.
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