- MOIL increases price by 5-10% across all products
- 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 5-10% across its all product offerings for the October-December (Quarter-3) owing to low imports and low availability of ore in domestic market.
High grade prices have been raised by 5% and low grade ore by 10%. Mn 37.5% is now being offered at Rs 10,100/MT ($163) against Rs 9,616/MT ($155) in last quarter. Similarly Mn 48% is being offered at Rs 15,611/MT ($251) against Rs 14,868/MT ($240) in last quarter.Low grade manganese ore with Mn content 25% is being offered at Rs 3,738/MT ($60) against last quarter prices of Rs Rs 3,398/MT ($55). (All prices excluding royalty and taxes)
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.
Trade sources say, prices have been raised in line with low imports of manganese ore in India due to weak currency exchange rate and low production of ore in domestic market during monsoons.
Although most of the ferro alloy manufacturers were anticipating that prices will be either remain unchanged or may be cut looking at sluggish demand. It has come as a surprise to these manufacturers, who have been struggling to make profits.
A ferro manufacturer based in eastern belt of India highlighted that, “we were expecting MOIL to cut its prices as global prices are also on a downward trend.”
Recently another private manganese ore miner, Orissa Manganese and Minerals Limited (OMML), a subsidiary of Adhunik Metaliks Limited has increased its prices by around 7%-10% for September 2013. OMML having an annual production of about 2 lakh tonnes, contributes 9% of the country's overall Manganese ore production.
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