India’s state-owned trading company, MSTC, which conducts the e-auction of manganese ore in Karnataka, in FY16 has fetched bids at an average2.2% above floor value. Producers from Andhra Pradesh were awarded most of the material. Also, plants from Chhattisgarh, Karnataka, Maharashtra, West Bengal, Tamil Nadu, Goa and Delhi were awarded the material.
In FY16, 145,824 MT of manganese ore was put on auction in Karnataka. The total bid quantity was 151,280 MT in FY16.
The manganese (Mn) content of the material offered was in the range of 21-40 % and iron (Fe) content was in the range of 15-32%, according to information on MSTC’s website. In FY16, Mn – 29%; the Fe content ranged between 24 to 28% and the average booking price was around INR 2,927/MT. Royalty 5%, VAT 5.5% (on auction price and royalty) /CST, and FDT 12% are applicable.
Consumer uptake had been sluggish, corresponding with the slowdown in the domestic Manganese Alloys and Finish Steel market. Most of the plants in Andhra Pradesh were also shut for a long duration on higher power tariff. Market inactivity had been lacklustre, and so miners were held up with existing stocks which they were unable to sell as desired.
In FY16 Indian manganese alloy market was on a downtrend tracking a poor steel market. Hence, Manganese ore prices were also under pressure as demand for manganese ore continued to be sluggish on the back of poor demand for manganese alloys.
Leave a Reply