SAIL had invited an open tender for tentative purchase of 44,400 MT high carbon ferro manganese from indigenous sources for its different units/plants.
The material was required in two cycles of 3 months each between Aug’16-Jan’17. The due date for the submission of the bid was 26 Jul’16. However, the company has had to withdraw the tender as it received no bids. This decision has mostly come in because of the low floor price, revealed market sources.
Domestic Ferro Manganese Offers Rise as Producers Suspend Production
Ferro manganese prices strengthened again this week amid a scarcity of material, but most sources doubted this could be sustained as fundamentals were still bearish on poor demand.
SteelMint assessed current weekly offers for ferro manganese 70% min is INR 50,000/MT (Ex- Durgapur) and INR 51,000/MT (Ex- Raipur).
Ferro manganese prices have risen in the domestic market as most producers have suspended their production, on account of very low availability of high grade manganese ore in the Indian market. Trading interest for ferro manganese was muted as buyers were hesitant to commit given the unclear outlook of the market. A Raipur based producer said, “Prices are heading up because of supply constraints. People are skeptical about the market condition as demand in particular is very low.”
Trading activity in the ferro manganese export market remained slow, although prices were seen soaring high.
Offers for ferro manganese 70% min is at around USD 750/MT FoB India (East Coast) and 75% min. is being offered at around USD 790/MT FoB India.
According to market watchers, Ferro Manganese prices are expected to come down in the coming weeks.
Exchange Rate: USD 1 = INR 66.8
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