Indian Ferro Manganese Price Stable; Export offers $ 875/t FOB India

Ferro Manganese prices remain firm due to limited availability, and balanced with low demand from end-users in the domestic market

Market participants reported that the Ferro Manganese market is witnessing more inquiries from overseas buyers, while prices remain steady. Current prices of HC Ferro Manganese in Raipur stand at INR 54,000 (70% Mn) and INR 60,000 (75% Mn). In Durgapur, HC Ferro Manganese is being offered at INR 55,500. All prices are basic and per metric tonne. A senior official from a major Ferro Manganese producing Company remarked, “Short of any significant change in the supply/demand ratio, there is no real changing coming in terms of pricing, in the foreseeable future.” He further revealed that as there are very few producers producing higher grade (75% Mn) material, it is possible to sell the same grade at a premium. Moreover, Ferro Manganese producers are also facing margin pressure as MOIL has hiked prices by 5-10% across all product offerings for the October-December (Quarter-3).

In the export market, Indian producers have kept offer levels firm in line with strengthening of the Rupee, and with increase in demand from Europe, Middle-East countries, especially Iran. Export offers for HC Ferro Manganese 70% min. stand at around USD 875 /MT, FOB India (East-coast), and HC Ferro Manganese 75% min. stand at around USD 975 /MT, FOB India (East-coast).  A trade source remarked, “Demand is fairly normal but producers do not want to lower price even though Rupee has stabilized and relatively strong against the Dollar.”

SteelMnt assessed that production is very low in the state of Andhra Pradesh, as there have also been widespread power blackouts in Andhra Pradesh due to a strike by utility workers in protest against the division of the State, which has been proposed by the Indian Government, resulting in protests that have intensified over the past week. 

On the future outlook, with a very severe cyclone about to hit Eastern coast of India, which is also the Ferro Alloys producing hub of India, production is expected to be severely disrupted and ports will be non-operational as well. Shipments are expected to be delayed by a month.