MSTC recently conducted an e-auction on behalf of SMIORE, Bellary, in which it received bids from only 6 different companies.
India’s state-owned trading company, MSTC, which had conducted the e-auction of manganese ore in Karnataka on 16 Oct’15, has fetched bids at the set floor value. Producers from Chhattisgarh, Karnataka, Andhra Pradesh and Tamil Nadu were awarded the material.
There was increase in bids over floor value by a mere 0.22%. This time about 4,960 MT of manganese ore was put on auction and all of which was successfully sold.
The manganese (Mn) content of the material offered ranges from 24.5-33 % and iron (Fe) content was in the range of 20 -30%, according to information on MSTC’s website. For, Mn – 31%; Fe – 24 to 26%, H1 (winning bids) was awarded at the same price as the floor price of INR 3,000/MT (USD 1.5/dmtu). Royalty 5%, VAT 5.5% (on auction price and royalty) /CST, and FDT 12% are applicable.
The price for similar grade of manganese ore (Mn 30-32%) is around INR 6,000/MT in Odisha and INR 5,000/MT in Balaghat.
Manganese ore demand is very low in the market owing to weak buying interest from Manganese alloy producers. Earlier, in the month MOIL disclosed prices for the next quarter (October-December). The prices of all Ferro Grades of ore (expect Fines) have been reduced by 3%, Silico grade prices have been reduced by 5-10% while the prices of Manganese Ore Fines have been reduced by 5%. Prices have been cut on the backdrop of falling Manganese alloys prices in Indian and global market.
Manganese Alloy prices were down on low end-user demand. Silico manganese prices for Week 43 (19 Oct’15-25 Oct’15) was assessed at around INR 43,000/MT, Ex-Raipur and INR 44,000/MT, Ex-Durgapur.
Exchange Rate : USD 1 = INR 65
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