Several factors like export incentive removal/reduction, weak demand from domestic and export market continue to pressurize the Ferro Manganese market.
There has been no improvement in the High Carbon Ferro Manganese market this week, as the new quarter brings with it no upturn in market conditions on what has been a perennially grim market in 2015. Ferro Manganese prices are under pressure and sources are of the view that it could come down further. A producer from Raipur looking at the market condition remarked “For us today it is all about surviving”. He further stated that there is no pull in the market presently.
SteelMint assessed that current grade 70% min being offered at INR 46,000/MT (Ex-Raipur) and INR 47,000/MT (Ex-Durgapur).
MOIL reduces Ferro Manganese Grade Prices
Manganese Ore India (MOIL), the country’s largest and government owned manganese ore producer, has cut prices of various grades of Manganese ore by 10-25% for the quarter April-June, 2015. Prices are cut against the backdrop of falling Manganese alloys prices in Indian and global market. The prices of all Ferro grade have been reduced by 10-15%.
Ferro Manganese Export Offers down marginally
The impact of the new foreign trade policy, which reduces export incentive on Ferro Alloys, is being weighed by the market. Indian Ferro manganese export offers have reduced marginally as the market awaits implications of the new policy to manifest themselves. The overall export market is dampened as international buyers were still not keen on purchasing from India. Indian producers have lowered their price levels as sales were not happening at all. Export offers for HC Ferro Manganese 70% min is around USD 720/MT FoB India (East Coast) and 75% min is being offered at around USD 800/MT FoB India.
SteelMint assessed that the World steel market is down for which there is no demand coming in from the international buyers. Along with this changes in the Foreign Trade Policy has further dampened the export market. In FY15 India exported most of its Ferro Manganese to Iran. However, under the Merchandise Exports from India Scheme (MEIS), announced under Foreign Trade Policy (FTP), 2015-2020 the incentive on Ferro Alloys has effectively reduced by 2% when exported to emerging markets like Iran, Japan, Korea and ASEAN countries.
“ The export market is very weak and with the new FTP we will have to consider differential pricing on the basis of country of export. It’s very difficult to have any buoyancy about the Ferro Manganese market at the moment. It’s very hard to trade as demand is very low,” stated a trader from India.
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