India: Bids inch down m-o-m in Sandur's recent manganese ore auction

• Only 23% of offered quantity booked
  
  
• Bids see overall increase by mere 0.04%
  
  

Sandur Manganese & Iron Ore Ltd (SMIORE) had conducted an auction for around 35,280 tonnes (t) of manganese ore (Mn20-34%, -10-100mm) on 28 June 2024. According to sources, around 8,064 t (Mn: 28-34%) were booked at INR 5,350-11,550/t, while nearly 27,216 t remained unsold, as per data compiled by BigMint.

Only around 23% of the offered quantity was booked, reveals data.

Key observations:

Bids remain stable compared to base price: Notably this auction fetched a very minimal variations in the base and bid prices as the latter saw an overall appreciation by a mere 0.04%.

• For instance, the Mn: 28-30% grades were set at a base price of INR 9,600/t ($115/t), and the bidding was seen at a weighted average price of INR 9,600/t ($115/t), ie, it remained unaltered.
  
  
• Another grade, Mn: 30-32%, had its base price at around INR 10,140/t ($122/t) which ended at a weighted average bid price at around INR 10,154/t ($122/t), up by a mere INR 14/t ($0.06/t), which again reflected nearly unmoved prices. Similarly, other grades remained range-bound in terms of the base and bid prices.
  
  

Bids witness decline m-o-m: Data revealed that the bid prices for Mn: 28-30% in the auction in May 2024 were recorded at INR 9,830/t ($118/t), while those in June 2024 were at INR 9,600/t ($115/t), dipping by INR 230/t (2%).

Similarly, for grades Mn: 32-34%, bids were at INR 12,570/t ($151/t) in May 2024, down by INR 1,050/t (8%) from INR 11,520/t ($138/t) in June.

The poor participation in Sandur's manganese ore auction can be attributed to the ongoing market volatility and cautiousness in decision-making in the domestic and global markets.