India: MOIL Raises Manganese Ore Prices By Upto 10% for Remainder of Q4

Manganese Ore India (MOIL), the country’s largest and government-owned manganese ore producer with an annual production of 11.5 lakh MT, has increased prices of various grades by up to 10%.

Prices have increased on the backdrop of soaring manganese ore prices in the seaborne market. It is to be noted that manganese ore prices in the global market have witnessed a steep increase due to rising demand from China and supply shortages.

MOIL has increased prices of various grades of manganese ore for the remainder of fourth quarter effective from March 01, 2018. The prices have been increased by 10% on the existing prices prevailing since 01.01.2018, for all the Silico Manganese and Ferro grades. The prices of Fines have been increased by about 5%. However, three particular grade of Manganese Ore fines have been offered at a price discount of 10%, namely- BGF534 (27% Mn), DBF487 (28% Mn) and UKF532 (25% Mn).

Global Manganese Ore offers have been witnessing a surge as demand from China has elevated.

Higher seaborne offers were finding less resistance on the back of low stock levels at Chinese ports as well as rising manganese ore prices at the port.

Seaborne ore prices continued on an upward trend. Australian 46% lump was heard at around USD 8.5/dmtu, Gabon 44% ore at USD 8.2/dmtu and South African 36%-37% Carbonate ore at around USD 7.9/dmtu. All prices are for March shipment, CIF India.

Previously, MOIL had raised its Manganese Ore prices in Jan’18 by up to 12.5% and kept prices unchanged in Feb’18.

MOIL focuses on mining of manganese ores. The company sold 1.13 MnT of manganese ore in FY17 as compared to 0.97 lakh tonnes in FY16 (16.75% increase Y-o-Y).The company has set a long-term target of increasing production capacity to 3 MnT by 2030. MOIL contribution amounts to almost half of the total domestic Manganese Ore production in India.