India: Ferro Manganese Prices increase sharply amid supply shortage

Indian Ferro Manganese prices increased sharply in the first week of the New Year amid supply shortage. The prices for Silico Manganese have been escalating since last week, due to this most of the Ferro Manganese producers shifted to Silico Manganese production. This, however, had a cascading effect on the market, and a severe shortage of Ferro Manganese is being noticed in the market. Moreover, the prices of Ferro Manganese are supported by the scarcity of Manganese ore in the market. Ferro Manganese producers are also holding back stock as they believe that the positive sentiments would pull up the prices of Ferro Manganese further.

The rise in Silico Manganese prices is more obvious and the current assessments are at, INR 66,000-66,500/MT in Ex-Raipur and INR 66,000-67,000/MT in Ex-Durgapur. Driven by this, the Ferro Manganese prices have also been going up. Current assessments are at INR 62,000/MT Ex-Durgapur and INR 63,000 Ex-Raipur. The export market remains silent this week due to the New Year holidays. Export quality HC 70% is being offered at USD 875/MT FOB India and HC 75% is offered at USD 940/MT FOB India.

On the future outlook, the prices seem to increase further in line with supply shrinkage and overall positive sentiment.