India: Ferro Manganese Offers Firm; Demand Low but Constant

Indian Ferro Manganese offers reflect stability while market activity remains low but constant.

A surge in global Manganese Ore prices has prompted the Ferro Manganese producers to raise their offers. "We have foreseen our margins to be drastically down with rising cost of the commodity," said a producer source commenting on high Manganese Ore prices.

SAIL's quarterly tender was observed to be the primary focus for most of the Ferro Manganese producers. "We are generally able to realize our commodity in such tenders despite limited activity in general market," said a source.

Steelmint learned that Ferro Manganese producers have been importing Manganese Ore fines and chips as an alternative. A source mentioned that during such upward trend of Manganese Ore, the fines and chips are doing well in the market.

SteelMint assessed Ferro Manganese offers at INR 76,000/MT (Ex-Raipur) and (Ex-Durgapur), while some bulk deals are heard to be at slightly lower levels.

The overseas market is heard to have become more active as their inquiries are taking pace, while export offers remained stable at USD 1160/MT FOB India for 70% grade and USD 1250/MT FOB India for 75% grade. However, confident producers are expecting the same to witness a surge in recent days.

"Chinese market will open soon after their lunar holidays and is expected to push the Manganese Ore prices upwards," said a source expressing his concerns for a further rise in Ferro Manganese offers.

On the future outlook, Ferro Manganese offers are expected to remain stable while market participants wait for the Chinese to return which will determine the prices of the commodity further.