India: Ferro manganese prices escalate on supply shortage

Indian ferro manganese prices have escalated by 5% w-o-w amid short supply as few producers shifted to pig iron and silico manganese.

Meanwhile, the manganese ore prices have also started to improve on supply concern from South Africa. Many small miners in the said country stopped production when the prices went below $4/dmtu cnf China, as they were incurring losses. in the meantime, supply from MOIL is not regular and thus it might have a serious impact on the availability of ores.

In addition to this, stainless steel prices are improving and the prices for major steelmakers have increased for the month owing to the supply-demand mismatch in the market post lockdown.

At present, the transactional prices of ferro manganese are in the range of INR 62,000-63,000/t ex-plant, meanwhile, export offers are quoted higher due to increased domestic prices and appreciating rupee. The current price assessments are at:

• Ex-Raipur: INR 63,000/t (+6.3% w-o-w)
  
  
• Ex-Durgapur: INR 62,000/t (+4.8% w-o-w)
  
  
• FOB India (HC 70%): $810/t (+4.3% w-o-w)
  
  
• FOB India (HC 75%): $870/t (+4% w-o-w)
  
  

Outlook:
The ferro alloys prices are escalating after the sentiments of an improved steel market has enthused the market. Meanwhile, it is also expected that the ore prices will rise further and push alloy prices further.