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

• Buyers book 50% of the offered quantity
  
  
• Bids see an overall appreciation by 4.48%
  
  

Sandur Manganese & Iron Ores Ltd (SMIORE) had conducted an auction for at around 34,272 t of manganese ore (Mn: 20-35%, size: -10 to 100mm) on 31 May 2024. According to sources, around 17,640 t (Mn: 20-35%) were booked at INR 3,000-17,000/t, while around 16,632 t remained unsold, as per data compiled with BigMint.

Key observations:

Bids slightly rise compared to base price: Notably this auction catered a minor variation in the base price and the bid prices as the bids saw an overall appreciation by 4.48%.

• For instance, manganese ore (Mn: 28-30%) was set at the base prices of INR 9,610/t ($116/t), and the bidding was seen at weighted average price of INR 9,830/t ($118/t), inching up by INR 220/t (2%).
  
  
• While another grade of manganese ore (Mn: 30-32%) had its base price at around INR 10,140/t ($122/t) which ended at an weighted average bid price at around INR 10,290/t ($124/t), up by INR 150/t (1%). Similarly other grades of manganese ore persisted stability with minor fluctuations in the base and bid prices.
  
  

Bids witness rise m-o-m: Analysis showed that auction results for April 2024 bid prices were recorded for manganese ore (Mn: 28-30%) INR 9,421/t ($113/t), while in May 2024 bids were at INR 9,830/t ($99/t), inching up by INR 409/t (4%).

Similarly, for grades (Mn: 32-34%) bids fetched at INR 10,900/t ($131/t) in April 2024, hopping a rise in bids for May 2024 at INR 12,570/t ($151/t), up by INR 1,670/t (15%).

The active participation in Sandur's manganese ore auction might be attributed to the rising imported manganese ore prices and MOIL's recent price hikes, increasing high-grade offers by 35% and low-grade by 30% m-o-m for June deliveries.