India: Manganese Alloy Producers Raise Offers for Export Market

Indian Domestic market has been widely affected due to the lockdown and the trading is halted for the lockdown days. Meanwhile, the situation in the export market has spiced up with an increased number of inquiries and the higher rates of goods. The major exporters are not much willing to make deals right now as they anticipate the prices to gain further, given the intensity of the outbreak of Covid-19 in the global scenario.

SteelMint learned from sources that Indian producers concluded deals for Ferro Manganese at around USD 900/MT for FeMn 75%, FOB India basis for May end delivery. Meanwhile, Silico Manganese prices also surged up to USD 920/MT due to increased Manganese ore prices. Most of the Indian producers are currently not operating and are dependent on the existing inventory. Although the inventory of Manganese ore is sufficient with the producers, yet the increasing prices of Manganese ore have created concern.

South Africa:
South African President Cyril Ramaphosa announced that the lockdown would be extended further by 2 weeks. This has created a panic in the Chinese steel market, which has led to an increase in Manganese ore prices. Post the lockdown in South Africa, Camilog released their prices for May delivery at USD 5.5/dmtu, for Mn 44%, lumps CIF China.

China:
The increase in the prices from Gabon along with South African Manganese ore has boosted the prices of Manganese alloys in China. The dust of the downstream steel has just settled, but the mine prices are volatile and the Steel market is falling, this is intensifying the pressure on the alloy plants. The news of South Africa extending the lockdown has created turbulence in the market even though the market participants were expecting such a situation. Meanwhile, due to the lack of substantial demand in the market, manufacturers of Ferro Manganese are under greater pressure.