Indian Ferro Manganese market faces difficulty as exporting the Alloy gets complex amid price expectation mismatch between overseas buyers and Indian sellers.
Indian Ferro Manganese sellers remained firm on offer levels for exports, on account of the strong Rupee and rising Manganese Ore prices – but have met with limited buying interest at these levels.
The overseas buyers are reluctant to accept offers higher than FOB USD 1080/MT for grade 75% Ferro Manganese. This is clashing with Indian sell-side participants’ price expectation of USD 1100/MT and USD 1150/MT (FOB India) for grade 70% and 75% respectively.
The scarcity of high grade Manganese ore is hampering Ferro Manganese production in India and very few manufacturers are producing currently. Indian Ferro Manganese prices have been observed to reach an 8 week high recently. However, producers are restraining from increasing the prices further. The present offers for Ferro Manganese grade 70% is stable at INR 75,000/MT (Ex-Durgapur) and INR 76,000/MT (Ex-Raipur).
Elevated Manganese ore prices are pushing the production cost of Ferro Manganese upwards and producers are trying to transfer the same to the buyers.
SteelMint assessed that end-user demand is essentially stable at a low level and Indian producers have less interest in reducing their offers, in line with strengthening of the Rupee.
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