- MOIL increases price by 3% across all products for 4th Qtr (Jan-Mar)
- Sandur Manganese and Iron Ore Ltd (SMIORE) has shut mining operations as mining lease expires
- Low imports and low production are major reasons
- Ferro alloy manufacturer’s margins will take a hit
- Other private miners expected to raise their offers
State-owned and India’s largest manganese ore producer, Manganese Ore India Ltd (MOIL) has hiked prices by 3% across its all product offerings for the 4th quarter January-March’14, owing to low imports and low availability of ore in domestic market.
Mn 37.5% is now being offered at Rs 10,541/MT ($170) against Rs 10,100/MT ($163) in last quarter. Similarly Mn 48% is being offered at Rs 16,079/MT ($260) against Rs 15,611/MT ($251) in last quarter. (All prices excluding royalty and taxes)
MOIL production down 2.4% in April-Nov
Hit hard by rains, the output of state-run manganese ore producer MOIL has dipped by 2.44 per cent to 6.7 lakh tonne in the first eight months (April-November) of the current fiscal, 2013-14.
MOIL Ltd, country’s single largest manganese ore producer with the capacity of producing 1.1 million tonnes, sells over 60 types of products, which fulfills almost 51% of India’s total requirement of manganese ore.
SMIORE suspends mining operations as mining lease expires
Sandur Manganese and Iron Ore Ltd (SMIORE) has suspended its mining operations with effect from January 1, 2014 following the expiry of its mining lease on December 31, 2013.
The Central Empowered Committee (CEC) of the Supreme Court has capped the mining capacity of SMIORE at 740,000 per annum as against the original sanctioned capacity of 1.6 million tonnes per annum following the approval of its reclamation and rehabilitation plan. Its manganese production capacity is capped at 180,000 tonnes per annum from 600,000 tonnes per annum sanctioned capacity.
Imports remain low amid weak currency
Trade sources say, prices have been raised in line with low imports of manganese ore in India due to weak currency exchange rate. Importers and traders also mention that stock on ports are quite low and will certainly put pressure on margins of ferro alloy manufacturers.
A ferro manufacturer based in eastern belt of India highlighted that, “ price hike was quite expected owing to short supply and low imports. We hope that we will be able to manage to pass on this price hike to our consumers. Current Silico Manganese of grade 60-14 is at around Rs 53,000-54,000/MT on ex works basis.
1USD = Rs 62
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