Low Demand for Indian Ferro Manganese in Overseas Markets

Indian-origin ferro manganese exports in April’16 (till 23 April) was reorded at 4067 MT. The Middle-East accounted for more than half of the exports from India in April’16. There is an absence of European buyers for Indian origin Ferro Manganese, who are fulfilling their requirement from Ukraine. Also, if Indian producers need to garner any buying interest from Europe, they need to offer 75% min. grade material at below USD 750/MT FoB India. The realization prices in the export market slipped on absence of buyers.

The realization from the Middle-East is much better. SteelMint learned from market sources that export offers for 70% min. is at around USD 800/MT FoB India (East Coast), and 75% min. is being offered at around USD 840/MT FoB India.

Demand from European nations has weakened greatly as European buyers were mostly procuring the material from Ukraine.

“There is no demand, and I have no inquiries this week. Bids are too low, Indian offers are too high for buyers. Many producers are held with stock. We are not sure but prices may fall again as market outlook is very weak,” said a producer from Kolkata.

Market sources remained pessimistic about market fundamentals and outlook.

Ferro Manganese Export April’16(till 23 April)

Qty in MT
Source: SteelMint Research
Exchange Rate: USD 1 = INR 66.3

Indian Ferro Manganese Prices Continues to Drift Lower on Shrinking Demand

Buying interest remained lukewarm with most end users staying on sidelines. Steel mills were being cautious with their procurement as steel sales were weak. “The sentiment in the ferro manganese market is bearish and prices could retreat further,” remarked a producer from Raipur.

SteelMint assessed ferro manganese 70% being offered at INR 50,000/MT (Ex-Durgapur) and INR 50,500-51,000 (Ex-Raipur).

Buy and sell ideas remained fairly far apart, as buyers were waiting for offers to fall. Even after dropping the offers buy and sell side offers did not match.