MOIL’s (Manganese Ore India Ltd) manganese ore production decreased by 9.3% in FY16 in comparison to FY15.
MOIL’s, India’s state owned and largest manganese ore producer, reported a fall of 9.3% in manganese ore production in FY16. Production in last fiscal stood at 1.032 MnT against 1.139 MnT in FY15. MOIL holds around 50% of total manganese ore production in India.
In FY16 total manganese ore fines production by MOIL was 0.126 MnT where as in FY15 manganese ore fines by MOIL was 0.162 MnT. The total MOIL manganese ore lump production in FY16 was 0.906 MnT and in FY15 was 0.977 MnT.
Production and Imports fall on Low Demand
Indian manganese ore production fell on account of low demand from ferro alloy manufacturers, who are struggling with over capacity and low margins.
Production in FY16 was assessed at 2 MnT against 2.24 MnT in FY15, with a fall of over 10%. Where as imports also noticed a sharp fall of 30%, in FY16. 2.2 MnT ore was imported against 3.1 MnT in FY15.
Ferro alloy manufacturers blame over capacity and weak demand in global market a major reason for fall in ferro alloy production in India.
“Ferro alloy industry is in a bad shape in India. Low margins and poor demand is forcing many producers to shut their shop. Also, Malaysia is a serious threat for Indian manufacturers.” said a ferro alloy producer in eastern India.
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