With supply tightness and high cost of production – there is a strong impetus for Ferro Manganese prices to remain firm and perhaps strengthen in the coming month.
Efforts by Raipur producers to increase prices for Ferro Manganese have been partially successful this week, as couples of deals have been concluded at up to INR 58,000/MT (70% Grade, Ex-Raipur). This is higher than last week, when offers at these levels were being rejected by buyers. Current prices of HC Ferro Manganese in Raipur are settled around INR 58,000(70% Mn) and INR 61,000 (75% Mn). In Durgapur, HC Ferro Manganese is being offered in the range of INR 55,500- 56,000 (70% Mn).
[su_quote]A producer source from Durgapur remarked, “I have a fair idea of the Ferro Manganese market rising up, and it will not be a small increase, but a steep rise in prices by INR 3,000-4,000/MT within the next 20 days.”[/su_quote]
This view was also echoed by a Ferro Manganese trader in Raipur, who said he believed that as the Ferro Manganese producers have been incurring a loss for quite some time now – will not let the opportunity go by, and will be united in hiking prices.
Export Market
Indian Ferro Manganese export offers remained flat this week. Most international buyers not inquiring for the material, but several Indian traders expect better prices in February, once the foreign buyers return to the market. Export offers are unchanged for HC Ferro Manganese 70% min. is around USD 880/MT FoB India (East Coast), and HC Ferro Manganese 75% min. is being offered at around USD 960/MT, FoB India (East Coast).
[su_quote]“The export market is quiet and we are committed in fulfilling our domestic contracts”, reported a Raipur based producer.[/su_quote]
SteelMint assessed that February rates for Ferro Manganese should be higher with supply tightness in the domestic market and high cost of production.
Exchange Rate: USD 1= INR 62.22
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