India: Lack of Demand Weighs Down on Ferro Manganese Market

Indian Ferro Manganese prices have been under pressure on limited buying before the Diwali holidays.

The Indian Ferro Manganese market has continued to see a low level of demand with prices coming off accordingly. The lack of interest was not surprising given the lack of end-user demand from steel mills. "Domestic demand is quite weak in the market now, and there have been no such purchases heard this week," stated a Raipur based producer.

Diminishing inquiries for the Alloy failed to support Ferro Manganese offers in the domestic market. Moreover, Ferro Manganese producers are also having to deal with elevated prices of Manganese Ore

Currently, Ferro Manganese offers are at around INR 71,500 (Ex-Raipur) and INR 72,500 (Ex-Durgapur).

The overseas market reflected a similar trend, where the buyers are showing reluctance in accepting current offers. A producer source revealed to SteelMint that the international buyers have counter offered for the 76% grade Ferro Manganese at USD 1150/MT, but the deal could not be concluded as the price is too low for the seller.

Another source added that there are hardly any inquiries from Europe as they are stocked well and Iran is the prime market for Indian sellers. However, realization value is lower than expected.

SteelMint assessed export offers are in the range of USD 1110-1120/MT FOB India for 70% grade and USD 1160-1170/MT for 75% grade FOB India.

On the future outlook, market participants are of the view that Ferro Manganese prices are likely to remain stable rather than dropping further.