Indian Ferro Manganese Prices remain firm

There is a slight increase in Ferro manganese demand and hence prices are on the same level, although market outlook is quite dull.

In the domestic market, Indian producers said that the market has seen a slight uptick in demand but still there is an air of bearishness. The Ferro manganese market has lost ground earlier owing to lower offers and absence of buying interest.

SteelMint assessed the current price for 70% min grade is around INR 46,500/MT (ex-Raipur) and INR 47,000/MT (ex-Durgapur).

“The market continues to be slow. This week, I am seeing fewer sporadic inquiries. Steel mills have not been out looking for material given their production cutbacks and the prices of Ferro manganese should remain around this level in the near-term”, stated a producer from Kolkata.

SAIL Tender

Steel Authority of India Ltd (SAIL), one of the major Steel producers in India, consumes approximately 80,000 MT HC Ferro manganese annually. The company had earlier released a tender to procure a tentative quantity of 23,484 MT HC Ferro manganese from indigenous manufacturers for a period of four months, starting from May’15-Aug’15. Out of the total quantity, 16,000 MT was allocated for Bhilai Steel Plant (BSP). SteelMint learned from sources that the tender was awarded to Prakash Industries at INR 43,250/MT (ex-plant, Champa). This has further pressurized the market and there seems to be no chance of recovery in Ferro manganese prices in the near future.

Export Offers Unchanged on Weak Demand

Overseas demand for Indian origin HC Ferro manganese is low, although Indian suppliers have kept prices unchanged. Producer sources said there were few offers or inquiries. Export offer for HC Ferro manganese 70% min is around USD 730/MT, FoB India (East Coast) and 75% min is around USD 810/MT, FoB India; unchanged W-o-W.

“Demand has been poor over the past few months and prices seem to be flattening out”, remarked a producer source from India.

SteelMint assessed that producers are waiting for some kind of trigger to push up prices as the market has been dull for a long time. But, due to the recently concluded SAIL tender, which could pull down prices. However, the new foreign trade policy, which reduces export incentive on Ferro alloys, will restrict any major correction in offers.

Exchange Rate : USD 1 = INR 63.5