India: Ferro Manganese Prices Edges Up On Dearer Ore

Indian Ferro Manganese prices correct upwards on the backdrop of rising ore prices coupled with SAIL's purchase tender resulting in limited supply in the open market.

The demand for Ferro Manganese in the domestic market has been observed to be limited on weakening steel fundamentals.

A rise in imported Manganese Ore prices has prompted the Ferro Manganese producers to raise their offers. Moreover, there are only a limited number of Ferro Manganese producers in the country which eases their selling pressure while fortifying them to raise prices.

"A recent purchase tender by SAIL has also supported the Ferro Manganese prices," said a producer source. Amidst the limited number of Ferro Manganese producers, most of them cater to the SAIL's purchase tender, which heats up the prices in the normal market, he added further.

SteelMint assessed Ferro Manganese offers at around INR 74,000/MT (Ex-Durgapur) and (Ex-Raipur).

"An uptrend is expected in the Ferro Manganese market," said another source referring to the limited mining activity in near-term due to the rainy season, while he also claims that demand is returning to the market but at a slow pace. Moreover, the depreciated Rupee has made importing Manganese Ore even costlier.

The overseas market has been witnessing healthy demand, especially from the Asian countries, and the weaker Rupee has aided Indian Ferro Manganese suppliers to focus more on the overseas market. The export offers witnessed a marginal upward movement to USD 1100/MT FOB India for 70% grade and USD 1175/MT FOB India for 75% grade.

On the future outlook, market participants expect prices to maintain stability with fair chances of moving upwards due to rising ore prices and weaker Rupee.