Indian Ferro Manganese Market Struggles on Low Demand

Ferro manganese market remained weak, as sellers face limited buying interest from end users.

Ferro manganese market continues to remain soft as producers and traders continue to lament on low deals. Chhattisgarh State Electricity Board (CSEB) has increased power tariff by 16-20% for state based steelmakers wef 1 June’15. With the increase in power tariff, few producers in Raipur have increased their offers and now are offering at INR 48,000/MT. Whereas, other producers who have high inventories, are still offering at INR 47,000/MT. Most producers reported very low demand, coupled with low production of the material.

A purchase deal was reported to be concluded by a major stainless steel producer at INR 44,000/MT (Ex-works) for a bulk quantity of approximately 1000 MT. Apparently, there is a huge difference in prices for bulk and retail trade.

In Durgapur, ferro manganese is being offered at INR 48,000/MT unchanged W-o-W.

Ferro Manganese Export Market Remains Dull W-o-W

Export offers for HC ferro manganese 70% min is around USD 730/MT FoB India (East Coast) and 75% min is being offered at around USD 800 /MT FoB India, unchanged W-o-W. No deals were heard in the ferro manganese export market as price expectations of buyers and sellers differed.

“I believe international markets, dollar strength, weakening steel prices are downward pressure on pricing in general, which have been huge factors on keeping this market in check,” stated a Kolkata based producer

SteelMint assessed that there is little confidence in the ferro manganese market as demand has not picked up and there is little possibility of any price rise until demand from domestic and export market returns.

Exchange Rate : USD 1 = INR 64