India: Bids remain stable in Sandur's recent manganese ore auction despite limited participation

• Buyers book only 7% of offered quantity
  
  
• Lower grades (26-28%) get preference
  
  

On 18 December 2024, Sandur Manganese & Iron Ore Ltd auctioned 57,456 tonnes (t) of manganese ore (Mn: 20-35%, -10-100mm). Approximately 4,032 t were sold at prices ranging from INR 2,500-12,400/t, while the remaining 4,032 t remained unsold, as reported by BigMint.

Sources indicated that only around 7% of the total offered quantity was booked. Lower grades of 26-28% Mn ore lumps got preference although these remained capped at around 1,500 t out of the total quantity sold.

Overall, response to the auction was modest but bids remained stable.

Key observations

Bids remain stable against early Dec'24 auction

Data showed that the bids for Mn: 26-28% (lumps) in the auction on 18 December 2024 were recorded at a weighted average of around INR 8,290/t ($98/t), while those on 3 December 2024 were also at the same levels.

Meanwhile, the bids for lumps Mn: 30-32% were largely stable on 18 December 2024 with bids at around INR 9,960/t ($117/t), against INR 9,950/t ($117/t), on 3 December.

Bids remain unchanged compared to base price

This auction witnessed no change when comparing the base prices with the final bids. For instance, Mn 26-28% grade lumps had a base price of INR 8,290/t ($98/t), and the bidding was also at the same level.

Meanwhile, other grades of manganese ore (30-32%) were also anchored. The base price was set at INR 9,960/t ($117/t), and the final bidding also remained at the same level.

The weak participation in the auction indicates that smelters are adopting a cautious approach, influenced by the volatility observed in the Indian domestic manganese alloys market.