India: Bids fall in latest SMIORE manganese ore auction

• Buyers purchase 35% of offered quantity

  
  
  

• Weaker alloys market drives drop in bids

  
  
  

On 20 November 2024, Sandur Manganese and Iron Ores Limited (SMIORE) auctioned 27,720 tonnes (t) of manganese ore (Mn: 20-34%, -10-100 mm). Approximately 9,576 t (around 35% of the offered quantity) were sold, fetching prices in the range of INR 8,200-11,400/t. A large majority, 18,144 t, was left unsold.

Notably, bids (weighted average) for most lots, comprising Mn: 28-30% (lumps), declined by 17% to INR 8,350/t ($99/t) on 20 November compared to around INR 10,000/t ($118/t) in the previous auction on 6 November.

Key observations

Bids inch down for major lots

Data showed that bids for Mn: 28-30% lumps in the auction on 20 November were at a weighted average of around INR 8,350/t ($99/t), while those on 6 November were at around INR 10,000/t ($118/t), down by 17%. This grade accounted for the majority of lots.

However, bids for Mn: 30-32% lumps recorded a slight increase of 2% to INR 9,960/t ($118/t) on 20 November against INR 9,730/t ($115/t) on 6 November.

This auction witnessed stability, with final bids higher than the base prices by a slight 0.35%. For instance, Mn 28-30% grade lumps had a base price of INR 9,380/t ($111/t), and bids were at a weighted average of INR 9,400/t ($111/t).

Meanwhile, a base price of INR 9,950/t ($118/t) was set for other grades of manganese ore (30-32%), and the final bid price was near INR 9,960/t ($118/t).

Bids dropped for most lots amid a decline in the manganese alloys market. Vizag silico manganese prices moved down by INR 2,600 ($31/t) in November 2024.